Authorizing exchange item redemption in an exchange item marketplace network

ABSTRACT

A method includes a marketplace server establishing one or more security parameters for an exchange item and securely providing the one or more security parameters to a user computing device of the data communication system. When the user computing device desires to use the exchange item, the method further includes generating, by the user computing device, first dynamically secure exchange item data. The method further includes the marketplace server receiving the first dynamically secure exchange item data from the user computing device, generating second dynamically secure exchange item data, and comparing the first dynamically secure exchange item data with the second dynamically secure exchange item data. When the first dynamically secure exchange item data substantially matches the second dynamically secure exchange item data, the method further includes authorizing, by the marketplace server, the use of the exchange item by the user computing device.

CROSS REFERENCE TO RELATED PATENTS

The present U.S. Utility patent application claims priority pursuant to35 U.S.C. § 119(e) to U.S. Provisional Application No. 62/398,804,entitled “AUTHORIZING EXCHANGE ITEM REDEMPTION IN AN EXCHANGE ITEMMARKETPLACE NETWORK,” filed Sep. 23, 2016, which is hereby incorporatedherein by reference in its entirety and made part of the present U.S.Utility patent application for all purposes.

STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT

NOT APPLICABLE

INCORPORATION-BY-REFERENCE OF MATERIAL SUBMITTED ON A COMPACT DISC

NOT APPLICABLE

BACKGROUND OF THE INVENTION Technical Field of the Invention

This invention relates generally to computer networks and moreparticularly to an exchange item marketplace network.

Description of Related Art

The use of credit cards, debit cards, and gift cards to pay for goodsand services is well known. It is further known to use services such asPayPal™ or Apple Pay™ to expand the use of credit cards and debit cardsthrough computing devices (e.g., computers, tablets, cell phones, etc.).The use of these services is aided by the standardized numbering systemand format used by credit card issuers and debit card issuers.

For a credit card and debit card transaction, the credit or debitcardholder presents the credit or debit card to a merchant (e.g., online or brick & mortar) to pay for a purchase. The merchant uses pointof sale (POS) equipment to capture the information of the credit ordebit card and to enter the amount of the purchase. This information issent to an acquirer (e.g., the financial institution of the merchant).The acquirer sends the transaction information via a secure network of acredit card company to the cardholder's issuer (e.g., a financialinstitution that issued the credit or debit card to the cardholder).

The issuer approves or declines the transaction and sends the responseback to the acquirer via the secure network of the credit card company.The acquirer sends the response (e.g., approved or declined) to themerchant to complete the transaction. Money, however, is not exchangedat the time of purchase, but is done during clearing and settlement.

Clearing and settlement begins when the merchant deposits thetransaction receipt with the acquirer. The acquirer credits themerchant's account and sends the transaction receipt to the issuer viathe secure network. The issuer posts the transaction to the cardholder'saccount. The cardholder pays the issuer in response to receiving amonthly statement.

The issuance and use of a gift card is significantly different than thatof a credit card. FIG. 1 illustrates a diagram regarding the issuanceand use of a gift card. A branded company (e.g., a retailer, a chainstore, a restaurant, etc.) issues a request to create gift cards to aprocessor service. The processor service creates the gift cards, whichmay be issued with specific values or issued as blanks; where the valueis specified at the time of purchase.

The processor service provides the gift cards to a distributor who isresponsible for distributing the gift cards so that a consumer maypurchase them. For example, the distributor may provide gift cards tomerchants so they may sell the gift cards. At some point, a consumerpurchases a gift card (e.g., a sporting goods company gift card for$50.00). The payment for the gift card is processed such that thedistributor, processing service, and branded company each are paid theirrespective shares.

If the gift card is used, a merchant (e.g., a franchise owner of thebranded company) captures information of the gift card via point of sale(POS) equipment. The information of the gift card is processed todetermine if it is a valid gift card and to determine the balanceremaining on the gift card. If the card is valid, the use of the giftcard is authorized up to the balance remaining on the gift card. Oncethe use is complete, the balance is updated, processing fees are paid,and the branded company is debited.

Another difference between credit cards and gift cards is that giftcards do not have a standardized numbering system or format. As such,gift cards can have one of thousands of different numbering systems andformats, which have to be recognizable by the POS equipment.

Yet another different between credit cards and gift cards is when moneyis processed. For credit cards, money is not processed until a purchaseoccurs, while gift cards are purchased and then subsequently used. Assuch, money is processed at the time of purchase of the gift card andagain if the gift card is used.

A still further difference between credit cards and purchased gift cardsis that, if a credit card goes unused, no money is spent. In contrast,if a purchased gift card goes unused, money has been spent to acquirethe card, but no goods or services are acquired. It is estimated thatbillions of dollars worth of purchased gift cards go unused annually.While this may be a favorable scenario for the branded company, it isnot a favorable scenario for consumers.

Raise Marketplace Inc. introduced a system that enables gift cardholdersto sell their unused or unwanted gift cards. This system allows a giftcard seller to post a gift card for sale in a virtual gift cardmarketplace. Buyers can access the virtual gift card marketplace andpurchase gift cards that are offered for sale. When a gift card ispurchased, the system processes the purchase to debit the buyer, creditthe seller, and provide the gift card to the buyer.

The system may provide the physical gift card to the buyer, whichrequires obtaining the physical gift card from the seller and deliveringit to the buyer. Alternatively, the system provides the information ofthe gift card to the user in a voucher format (e.g., a document that thebuyer can print off that includes the relevant information of the giftcard).

BRIEF DESCRIPTION OF THE SEVERAL VIEWS OF THE DRAWING(S)

FIG. 1 is a schematic block diagram of an embodiment of an exchange itemmarketplace network in accordance with the present invention;

FIG. 2 is a schematic block diagram of an embodiment of user device ofexchange item marketplace network in accordance with the presentinvention;

FIG. 3 is a schematic block diagram of an embodiment of a marketplaceserver of exchange item marketplace network in accordance with thepresent invention;

FIG. 4 is a schematic block diagram of another embodiment of an exchangeitem marketplace network in accordance with the present invention;

FIG. 5 is a schematic block diagram of another embodiment of an exchangeitem marketplace network in accordance with the present invention;

FIG. 6 is a schematic block diagram of another embodiment of an exchangeitem marketplace network in accordance with the present invention;

FIG. 7A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 7B is a schematic block diagram of a transactions blockchain inaccordance with the present invention;

FIG. 7C is another schematic block diagram of a transactions blockchainin accordance with the present invention;

FIG. 7D is a logic diagram of an embodiment of a method for generating atransactions blockchain in accordance with the present invention;

FIG. 7E is a logic diagram of another embodiment of a method forgenerating a transactions blockchain in accordance with the presentinvention;

FIG. 8A is a logic diagram of an embodiment of a method for utilizing anexchange item in an exchange item marketplace network in accordance withthe present invention;

FIG. 8B is a logic diagram of an embodiment of a method for utilizingrules in an exchange item marketplace network in accordance with thepresent invention;

FIG. 8D is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 8E is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 8F is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 8G is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 8H is a diagram of an exchange item database in accordance with thepresent invention;

FIG. 8J is another schematic block diagram of a transactions blockchainin accordance with the present invention;

FIG. 8K is a logic diagram of an embodiment of a method for modifying anexchange item in an exchange item marketplace network in accordance withthe present invention;

FIG. 8L is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 8M is a logic diagram of an embodiment of a method for securelymodifying an exchange item in an exchange item marketplace network inaccordance with the present invention;

FIG. 8N is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 8P is a logic diagram of an embodiment of a method for securelyprocessing an exchange item in an exchange item marketplace network inaccordance with the present invention;

FIGS. 9A-B are schematic block diagrams of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 9C is a schematic block diagram of an embodiment of a useprocessing in accordance with the present invention;

FIG. 9D is a logic diagram of an embodiment of a method for authorizingexchange item redemption in an exchange item marketplace network inaccordance with the present invention;

FIGS. 10A-B are schematic block diagrams of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 10C is a logic diagram of an embodiment of a method for abatingfraudulent exchange item acquisition in an exchange item marketplacenetwork in accordance with the present invention;

FIG. 11A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 11B is a logic diagram of an embodiment of a method for detectingfraudulent exchange item redemption in an exchange item marketplacenetwork in accordance with the present invention;

FIG. 12A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 12B is a logic diagram of an embodiment of another method forabating fraudulent exchange item acquisition in an exchange itemmarketplace network in accordance with the present invention;

FIG. 13A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 13B is a logic diagram of an embodiment of a method forredistributing an exchange item in an exchange item marketplace networkin accordance with the present invention;

FIG. 14A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 14B is a logic diagram of an embodiment of a method for convertingan exchange item identification approach in an exchange item marketplacenetwork in accordance with the present invention;

FIG. 15A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 15B is a logic diagram of an embodiment of a method for sharing anexchange item in an exchange item marketplace network in accordance withthe present invention;

FIG. 16A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 16B is a logic diagram of an embodiment of a method for convertingexchange item brand affiliation in an exchange item marketplace networkin accordance with the present invention;

FIG. 17A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 17B is a logic diagram of an embodiment of a method for validatingexchange item redemption in an exchange item marketplace network inaccordance with the present invention;

FIG. 18A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 18B is a logic diagram of an embodiment of another method forconverting an exchange item identification approach in an exchange itemmarketplace network in accordance with the present invention;

FIG. 19A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention;

FIG. 19B is a logic diagram of an embodiment of a method fortransferring an exchange item in an exchange item marketplace network inaccordance with the present invention;

FIG. 20A is a schematic block diagram of another embodiment of anexchange item marketplace network in accordance with the presentinvention; and

FIG. 20B is a logic diagram of an embodiment of a method for generatinga marketplace credit in an exchange item marketplace network inaccordance with the present invention.

DETAILED DESCRIPTION OF THE INVENTION

FIG. 1 is a schematic block diagram of an embodiment of an exchange itemmarketplace network 10 that includes user devices 12 of individualsellers, user devices 14 of bulk sellers, user devices 16 of individualbuyers, one or more marketplace servers 18 (an example embodiment isshown in FIG. 3), one or more databases 20, one or more networks 24, oneor more brand server(s) 26, one or more processor servers 28, one ormore distributor servers 30, point of sale (POS) equipment 32, and oneor more retailer servers 34. Hereafter, the exchange item marketplacenetwork 10 may be interchangeably referred to as a marketplace network,a system, a communication system, a data communication system, and acommunication network. The one or more marketplace servers 18 process,and the one or more databases 20 store a virtual marketplace of exchangeitems 22. Hereafter, the virtual marketplace of exchange items 22 may beinterchangeably referred to as a virtual marketplace, a marketplace, andexchange items.

Each of the user devices 12, 14, and 16 is a computing device thatincludes a computing core. In general, a computing device is anyelectronic device that can communicate data, process data, and/or storedata. A further generality of a computing device is that it includes acentral processing unit (CPU), a memory system, user input/outputinterfaces, peripheral device interfaces, and an interconnecting busstructure.

As specific examples, each of the user devices 12-16 may be a portablecomputing device and/or a fixed computing device. A portable computingdevice may be a social networking device, a gaming device, a cell phone,a smart phone, a personal digital assistant, a digital music player, adigital video player, a laptop computer, a handheld computer, a tablet,a video game controller, and/or any other portable device that includesa computing core. A fixed computing device may be a personal computer(PC), a computer server, a cable set-top box, a satellite receiver, atelevision set, a printer, a fax machine, home entertainment equipment,a video game console, and/or any type of home or office computingequipment that includes a computing core. An embodiment of a computingdevice 12-16 is further described below with reference to FIG. 2.

The exchange item marketplace network 10 supports the selling andpurchasing of exchange items. An exchange item is a closed loopfinancial instrument and/or other digital goods. For example, a closedloop financial instrument is a gift card, a voucher, a store credit,and/or other brand company (or merchant) sponsored form of credit for aspecific use (e.g., in a specific store, in a specific chain of stores,for a particular type of goods, etc.). A closed loop financialinstrument is distinguished from an open loop financial instrument, suchas a credit card.

A digital good is digital item that can legally be sold or resold by anindividual. For example, the digital item may be an original digitalbook, an original digital photograph, an original video clip, apurchased video game, a purchased software application, a purchasevideo, a purchased music file, a purchased digital book, a purchasedaudio book, etc.

In support of selling an exchange item, the marketplace server 18communicates with a user device of a seller (e.g., individual or bulk)to verify the user device (and the seller) and to ascertain informationregarding the exchange item being offered for sale. For example, themarketplace server 18 verifies user information (e.g., the seller'sname, account, personal identification number (PIN), a useridentification number (ID), payment account information (e.g., a creditcard number, checking or savings account information), seller's mailingaddress, etc.) and device information (e.g., an IP address, deviceserial number, a marketplace application ID, etc.) of the seller'scomputing device. Verification of the seller and corresponding computingdevice is discussed in greater detail with reference to FIG. 6A.

Upon receiving the information regarding the exchange item, whichincludes a brand name (e.g., a coffee franchise, a sporting goodfranchise, an electronics store, etc.), a serial number, a sellingprice, a remaining balance, restrictions of use, a bar code, and/orother pertinent information, the marketplace server 18 verifies it. Whenthe seller and the information regarding the exchange item are verified,the marketplace server 18 posts it in the virtual marketplace ofexchange items 22, which is stored in database 20.

The marketplace server 18 posts the exchange item in the virtualmarketplace 22 by creating a digital representation of the exchangeitem. To do this, the server creates a digital image of the exchangeitem, determines the brand of the exchange item, and the informationregarding the exchange item (e.g., a brief description, brand, sellingprice, balance, serial number, restrictions (if any), expiration date(if any), and/or any other pertinent information). In accordance with anorganization protocol of the virtual marketplace, the digitalrepresentation of the exchange item is added. For instance, theorganization protocol groups exchange items by types (e.g., restaurants,sporting goods, coffee shops, automotive goods, etc.), by brands (e.g.,a sporting goods chain, a coffee shop chain, etc.), by sales price, bybalance of the exchange item, by a savings value (e.g., a differencebetween the balance and the sales price), by expiration date, by dateoffered for sale, by special promotions, by seller, by restrictions, bya brief description (e.g., title of a video for resale), and/or anyother organization scheme that lends itself to searching for particularitems.

As such, for a particular exchange item offered for sale, its digitalrepresentation is added to the database 20 and will be displayed withina grouping per the organization protocol when a potential buyer or otheruser of the system 10 selects the grouping. In one example, if theexchange item is a gift card, a digital image of the gift card isdisplayed along with at least some of the related information (e.g.,sales price, balance, etc.). If the gift card includes a logo of thebranded company offering the gift card, the logo is often displayed inaccordance with requirements of the branded company.

A potential buyer of an exchange item offered for sale accesses thesystem 10 using its user device 16. For example, the user device 16 logsinto the system 10. If the user device 16 is associated with a buyerthat does not have an account with the system 10, the buyer creates onethrough the user device 16 with the system. For buyers with an account,the marketplace server 18 verifies the buyer user device 16 beforeallowing it access to the virtual marketplace 22. The buyer verificationprocess is discussed in greater detail with reference to FIG. 4. Oncethe buyer is verified, the buyer computing device 16 is allowed accessthe virtual marketplace 22. The buyer computing device 16 uses searchingcriteria that are in accordance with the organization protocol to searchthe virtual marketplace 22 for exchange items of interest. Themarketplace server 18 provides video-graphics data to the buyercomputing device 16 in accordance with the searching. When the buyercomputing device 16 finds exchange items of interest, it displays thevideo-graphics of the corresponding exchange items (e.g., a grouping ofgift cards).

The buyer computing device 16 receives an input corresponding to aselection of one of the exchange items of interest for purchase. Thebuyer computing device 16 sends the selected exchange item to themarketplace server 18 for processing.

The marketplace server 18 processes the selected exchange item via amultiple step process. One step includes verifying that the buyer isauthorized to purchase the exchange item (e.g., has the financialresources, is not limited by buying restrictions (e.g., dollar amount,quantity, type, etc.), is a legitimate buyer, etc.). Another stepincludes verifying integrity of the information of the selected exchangeitem (e.g., balance remaining is accurate, the offer to sell theexchange item has not been withdrawn, the exchange item is not currentlybeing processed for sale to another buyer, the exchange item is notexpired, the exchange item has not been voided by the branded company,etc.).

When the buyer is authorized and the information regarding the selectedexchange item has been verified, another step includes removing theexchange item from the virtual marketplace 22. Another step includesprocessing payment for the selected exchange item. The multiple stepbuying process is further described with reference to FIG. 4.

FIG. 2 is a schematic block diagram of an embodiment of computing device12-16 of exchange item marketplace network 10. The computing device12-16 includes a computing core 52, one or more input devices 54 (e.g.,keypad, keyboard, touchscreen, voice to text, etc.), one or more audiooutput devices 56 (e.g., speaker(s), headphone jack, etc.), one or morevisual output devices 58 (e.g., video graphics display, touchscreen,etc.), one or more universal serial bus (USB) devices, one or morenetworking devices (e.g., a wireless local area network (WLAN) device84, a wired LAN device 86, a wireless wide area network (WWAN) device 88(e.g., a cellular telephone transceiver, a wireless data networktransceiver, etc.), and/or a wired WAN device 90), one or more memorydevices (e.g., a flash memory device 92, one or more hard drives 94, oneor more solid state (SS) memory devices 96, and/or cloud memory 98), andone or more peripheral devices.

The computing core 52 includes a video graphics processing unit 60, oneor more processing modules 62, a memory controller 64, main memory 66(e.g., RAM), one or more input/output (I/O) device interface module 68,an input/output (I/O) interface 70, an input/output (I/O) controller 72,a peripheral interface 74, one or more USB interface modules 76, one ormore network interface modules 78, one or more memory interface modules80, and/or one or more peripheral device interface modules 82. Each ofthe interface modules 68, 76, 78, 80, and 82 includes a combination ofhardware (e.g., connectors, wiring, etc.) and operational instructionsstored on memory (e.g., driver software) that is executed by theprocessing module 62 and/or a processing circuit within the interfacemodule. Each of the interface modules couples to one or more componentsof the computing device 12-16. For example, one of the IO deviceinterface modules 68 couples to an audio output device 56. As anotherexample, one of the memory interface modules 80 couples to flash memory92 and another one of the memory interface modules 80 couples to cloudmemory 98 (e.g., an on-line storage system and/or on-line backupsystem).

FIG. 3 is a schematic block diagram of an embodiment of a marketplaceserver 18 of exchange item marketplace network 10. The server 18includes a computing core 122, one or more input devices 54 (e.g.,keypad, keyboard, touchscreen, voice to text, etc.), one or more audiooutput devices 56 (e.g., speaker(s), headphone jack, etc.), one or morevisual output devices 58 (e.g., video graphics display, touchscreen,etc.), one or more networking devices (e.g., a wireless local areanetwork (WLAN) device 84, a wired LAN device 86, a wireless wide areanetwork (WWAN) device 88 (e.g., a cellular telephone transceiver, awireless data network transceiver, etc.), and/or a wired WAN device 90),one or more memory devices (e.g., a flash memory device 92, one or morehard drives 94, one or more solid state (SS) memory devices 96, and/orcloud memory 98), and one or more peripheral devices. Note that theserver 18 may include more or less devices than shown in this exampleembodiment of a server.

The computing core 122 includes a video graphics processing unit 60, aplurality of processing modules 62, a memory controller 64, a pluralityof main memories 66 (e.g., RAM), one or more input/output (I/O) deviceinterface module 68, an input/output (I/O) interface 70, an input/output(I/O) controller 72, a peripheral interface 74, one or more networkinterface modules 78, and/or one or more memory interface module 80.

FIG. 4 is a schematic block diagram of another embodiment of an exchangeitem (EI) marketplace (MP) network that includes the seller's computingdevice 12, the buyer's computing device 16, a seller's financial server190, a service provider's financial server 192, a buyer's financialserver 194, the marketplace (MP) server(s) 18, and the database 20,which includes the virtual marketplace of exchange items 22. Each of theseller's computing device 12 and buyer's computing device 16 includes amarketplace interface 142, which includes a web browser 196 and a mobileapplication 198.

The MP server 18 performs function blocks that includes a sellerverification 200, a deny 202, an exchange item verification 204, an addexchange item to marketplace 206, a buyer verification 208, a deny 210,an exchange item purchase verification 212, an exchange item paymentprocessing 214, a remove exchange item from marketplace 216, an addexchange item to buyer's wallet 218, an exchange item use 220, and anexchange item balance update 222.

As an example of operation, the mobile application 198 of the seller'scomputing device 12 sends a request to sell an exchange item to themarketplace (MP) server(s) 18. The server 18 performs the sellerverification 200 functional block to determine whether the seller and/orthe seller's computing device 12 are a valid seller (e.g., device and/orseller are valid). When invalid, the server(s) 18 performs the deny 202functional block to communicate a denial of the request to sell theexchange item to the seller's computing device 12.

When the seller is verified, the server performs the exchange itemverification 204 functional block to determine whether the exchange itemis valid (e.g., is a valid exchange item, perform a balance check withan associated entity, i.e., a retailer, etc.). When invalid, theserver(s) perform the deny 202 functional block. When the exchange itemis valid, the server(s) 18 perform the add exchange item to marketplace206 functional block to add a digital representation of the exchangeitem to the virtual marketplace of exchange items 22 (e.g., creates anew entry for inventory within the virtual marketplace of exchange items22).

When a buyer desires to purchase an exchange item, the mobileapplication 198 of the buyer's computing device 16 sends a request tobuy a selected exchange item to the MP server(s) 18. The server(s) 18perform the buyer verification 208 functional block to determine whetherthe buyer is valid (e.g., the user and/or buyer computing device arevalid). When invalid, the server(s) 18 perform the deny 210 functionalblock to issue a denial of the purchase request to the buyer's computingdevice 16.

When the buyer is validated, the server(s) 18 perform the exchange itempurchase verification 212 functional block to verify that the buyer, viathe buyer's computing device, has sufficient means (e.g., money, credit,valid credit card, valid debit card, etc.) to pay for the selectedexchange item. For example, the exchange item purchase verification 212functional block enables the server 18 to receive buyer information fromthe buyer's financial server 194 verifying payment and/or verifying anability to pay. When unable to purchase the selected exchange item, theserver 18 performs the deny 210 functional block.

When the buyer is able to purchase the selected exchange item, theserver 18 performs the exchange item payment processing 214 functionalblock to process payment for the selected exchange item. For example,the server 18 collects payment from the buyer's e-wallet, the buyer'scomputing device 16, or the buyer's financial server 194, issues apayment to the seller's e-wallet, to the seller's computing device, orto the seller's financial server 190, and issues a commission payment tothe service provider's financial server 192.

After processing payment or concurrent with the processing of thepayment, the server 18 performs the remove exchange item frommarketplace 216 functional block to remove the selected exchange itemfrom the virtual marketplace of exchange items 22. For example, theserver 18 deletes an entry associated with the selected exchange itemfrom the database 20.

The server 18 performs the add exchange item to the buyer's wallet 218functional block to facilitate adding the exchange item to a buyer'se-wallet. For example, the server 18 updates a representation of thebuyer's wallet within the database 20 to include a digitalrepresentation of the purchased exchange item and issues a message tothe mobile application 198 to store a local copy of the digitalrepresentation within the buyer's computing device 16.

When the buyer desires to purchase something using an exchange item, themobile application 198 communicates a utilization message to the server18. The server 18 evokes the exchange item use 220 functional block toreceive the utilization message and to facilitate communication withother servers for verification and transaction execution. For example,the server 18 forwards the utilization message to a retailer serverassociated with the exchange item to initiate execution of thetransaction. Having successfully used the exchange item, the server 18,via the exchange item balance update 222 functional block, updates thebuyer's wallet to indicate that the exchange item has been utilized andto update the balance remaining on the exchange item, when appropriate.

FIG. 5 is a schematic block diagram of another embodiment of an exchangeitem marketplace network 10A that includes a plurality of sellers 702, aplurality of buyers 704, and an on-line exchange item marketplace 700.Hereafter, the exchange item marketplace network 10A may beinterchangeably referred to as a system, a communication system, and acommunication network. The sellers 702 include individual sellers 706,bulk resellers 708, and retailers 710. The buyers 704 include individualbuyers 712 and other types of buyers 714 (e.g., bulk buyers, resalebuyers, etc.).

Each seller 702 and each buyer 704 corresponds to a computing device12-16 that includes a marketplace interface module 716 that enables thecomputing device access to the marketplace 700 and to function therein.The marketplace interface module 716 includes a browser application 722,a mobile device application 720, and/or any type of application thatenables access to the marketplace 700. The computing core 52 of the userdevice executes one or more of these applications. For instance, each ofthe applications includes operational instructions that are stored inmemory (e.g., main memory, flash memory, SS memory, HD memory, and/orcloud memory) and executed by the processing module 62 of the computingcore 52.

Alternatively, the marketplace interface module 716 includes aprocessing circuit and memory, wherein the memory stores and theprocessing circuit executes the operational instructions of theapplication. As yet another alternative, the processing circuit of themarketplace interface module 716 and the processing module 62 of thecomputing core 52 co-process the operational instructions of one or moreof the applications. Interface 718 functions in a similar manner toprovide bulk resellers 708 and/or retailers 710 access and functionwithin the marketplace 700.

One or more marketplace servers 18 supports the on-line exchange item(EI) marketplace 700 by performing the functions of the correspondingfunctional blocks. The functional blocks include seller software tools738, individual seller fraud detection 724, individual sale processing726, bulk seller verification processing 730, bulk sale processing 732,retailer verification processing 734, retailer sale processing 736,displaying exchange items for sale 728 in the marketplace 700, paymentprocessing 748, MP user e-wallet 750, buyer fraud detection 740,purchase processing 742, consumer profiles 744, and market customization746. A functional block includes one or more of a standalone processingmodule that executes operational instructions to perform thecorresponding functions of the block, a software algorithm executed bythe computer core of the server to perform the corresponding functionsof the block, and/or a combination thereof.

The server(s) 18 perform the marketplace user e-wallet functional block750 to create and maintain an e-wallet for a user of the marketplace700. The e-wallet is essentially a file for an individual user (e.g., aperson, a legal entity, etc.) that stores information regarding exchangeitems bought, sold, and/or used by the user. For example, the e-walletstores a digital representation of each purchased exchange item that hasa value greater than zero. For example, a digital representation of agift card is displayed in an asset section of the e-wallet while thegift card has a balance above zero and the gift card has not expired.When the balance is zero or the gift card expires, the digitalrepresentation is removed and the information regarding the gift card isstored in an archive section of the e-wallet.

The e-wallet is further capable of storing and tracking marketplacecredit. For example, a user may purchase marketplace credit that issubsequently used to purchase an exchange item. In addition, a seller ofan exchange item may be paid in marketplace credit that the seller mayuse to purchase an exchange item or cash out.

The e-wallet further functions to archive data regarding previousexchange item purchases and/or previous exchange item sales. The amountof data stored for each exchange item purchase or sale may be userdefined or set based on a system default setting. For example, the datafor a purchase includes one or more of a purchase price, the exchangeitem ID, a serial number, a brand name, a purchase date, the value ofthe exchange item, restrictions of the exchange item, and an expirationdate. The data for a purchased exchange item may further include useinformation (e.g., when the exchanged item was used, the amount of valueused, the date of use, the place of use, etc.) and/or remaining valueinformation.

As another example, the data for a sale includes one or more of anasking selling price, a sold price, the exchange item ID, a serialnumber, a brand name, an offer for sale time stamp, a sold time stamp,the value of the exchange item, restrictions of the exchange item, andan expiration date. The data for a sold exchange item may furtherinclude price reduction information (e.g., the amount of the change, achange time stamp, etc.) and/or information regarding a withdrawal of anoffer for sale.

The server(s) 18 perform the seller software tools functional block 738to assist a seller (e.g., individual, bulk, or retailer) in setting aprice for an exchange item. For example, the server(s) 18 record dataregarding exchange items offered for sale, data regarding purchases ofexchange items, and data regarding exchange items for which the offerfor sale was withdrawn. From this data, the server(s) 18 determinespredictive sales information. For example, the server(s) 18 determinesfor a particular type of exchange item (e.g., a gift card for aparticular franchise) a correlation between the value of the exchangeitem and duration in the marketplace (e.g., a $250 gift card has anaverage duration of 1 day, a $100 gift card has an average duration of12 hours, a $50 gift card has an average duration of 5 hours, etc.).

As another example of predictive sales information, the server(s) 18determine a correlation between sales price and duration in themarketplace (e.g., a 5% discount has an average duration of 12.5 hours,a 3% discount has an average of 1 day, and a 10% discount has an averageduration of 1.5 hours). As yet another example, the server(s) 18determine a periodic sales volume for a particular exchange item (e.g.,how many sold in an hour, six hours, a day, etc.). As yet anotherexample, the server(s) 18 determine a current quantity of the particularexchange items for sale (e.g., how many are currently being offered forsale, at what sales price, the current average duration in themarketplace, etc.). The server(s) 18 may further analyze any type ofdata maintained by the system 10A to assist in the creation ofpredictive sales information.

In addition to creating the predictive sales information, the server(s)18 generate a seller's profile, which includes information regarding thesales tendencies and/or preferences of a particular seller. For example,the seller's profile includes information regarding one or more of thetypes of exchange items offered for sale, information regarding if andwhen exchange item offers for sale are withdrawn, initial asking pricesfor exchange items offered for sale, actual sales price information andcorresponding discounted percentage, frequency for which initial askingprice is adjusted, average duration of exchange items in themarketplace, standard deviation of duration of exchange items in themarketplace, etc.

From the predictive sales information and the seller's profile, theserver(s) 18 provide a suggested sales price for a particular exchangeitem. For example, the seller profile indicates that the seller has atendency to offer a particular exchange item with a minimal discount andprefers that the exchange item remain in the marketplace for less than 6hours. Further, the predictive sales information for the particularexchange item indicates that there is currently above normal quantity ofthe exchange item for sale, the current asking price has a greaterdiscount than the seller's preference, and the current average durationin the marketplace is 7 hours, the server(s) 18 provides one or morerecommendations and corresponding predictive outcomes (e.g., an initialasking price below the seller's profile to sell the exchange item within6 hours, an initial asking price corresponding to the seller's profileto sell the exchange item within 11 hours, etc.). The server(s) 18 mayfurther provide the predictive sales information to the seller'scomputing device.

The server(s) 18 perform the individual seller fraud detectionfunctional block 724 to automate detection of a fraudulent seller and/ora fraudulent exchange item. This includes the seller verification andthe exchange item verification as discussed in FIG. 4. The frauddetection further includes an automated process for resolving apotential fraud issue. For example, when a verification of seller fallsbetween verified and not verified, the server(s) 18 evoke a process torender a definitive verification decision. As another example, when theverification of an exchange item falls between verified and notverified, the server(s) 18 evoke a process to render a definitiveverification decision.

To extend the use of the marketplace to retailers or branded companies(i.e., the entity that initiates a gift card and ultimately accepts thegift card as payment), the server(s) 18 perform the retailerverification processing functional block 734 and the retailer saleprocessing functional block 736. The retailer verification processingfunctional block 734 includes one or more of setting up an account for aretailer to sell exchange items via the marketplace, verifying theretailer at least at the setup of the account and potentially for eachtransaction conducted via the marketplace, verifying the exchange itemsbeing offered for sale, and/or other verification mechanisms. As anexample, a secure portal is established between the retailer seller andthe marketplace server(s) 18 such that any communications via the secureportal is at least initially deemed a valid communication.

The retailer sale processing functional block 736 includes one or moreof creating digital representations of the exchange items offered forsale, determining selling parameters and posting the digitalrepresentations and the parameters in the marketplace. The sellingparameters include one or more of sales price, listing duration beforechanging price, restrictions, withdraw procedures, etc.

The server(s) 18 perform the buyer fraud detection functional block 740to automate detection of a fraudulent buyer and/or fraudulent financialinformation used for purchasing. This includes the buyer verificationand the purchase verification as discussed in FIG. 4. The frauddetection further includes an automated process for resolving apotential fraud issue. For example, when a verification of buyer fallsbetween verified and not verified, the server(s) 18 evoke a process torender a definitive verification decision. As another example, when theverification of financial information falls between verified and notverified, the server(s) 18 evoke a process to render a definitiveverification decision.

The server(s) 18 perform the payment processing functional block 748 toprocess payment through the user e-wallets of the seller and of thebuyer. For instance, payment by the buyer is made from the buyer'se-wallet by debiting a credit card, a checking account, a savingsaccount, a currency balance (e.g., money on account for purchases),and/or marketplace credit. Payment to the seller is made by creditingthe seller's e-wallet with currency, marketplace credit, and/or someform of financial receipt. The mechanics of the payment process includethe functionality described in FIG. 4.

The server(s) 18 perform the consumer profiles functional block 744 fora buyer. For the buyer, its consumer profile includes data regardingexchange item purchases of the buyer. The data includes one or more ofthe exchange items purchased, frequency of purchases, average purchaseprice, average value of purchased like exchange items (e.g., coffee shopgift cards), preferred discounts, etc. Note that this may be included inthe buyer's e-wallet or maintained as a separate file.

The server(s) 18 perform the market customization functional block 746to customize marketing of exchange items being offered for sale toparticular buyers based on their buyer profiles. The marketcustomization functional block 746 further includes determining a typeand a quantity of exchange items a retailer should offer for sale anddirecting marketing efforts to a particular segment of buyers. In thismanner, the system 10A efficiently and effectively couples exchangeitems for sale to buyers who typically buy such exchange items.

The server(s) 18 perform the individual sales processing function block726, the bulk seller verification processing functional block 730, thebulk sale processing functional block 732, and the purchase processingfunctional block 742 as described with reference to one or more of FIGS.1 and 4. The server(s) 18 also perform the displaying exchange items forsale functional block 728 to add/remove/edit an exchange item in themarketplace 700 as described with reference to one or more of FIGS. 1and 4.

FIG. 6 is a schematic block diagram of another embodiment of an exchangeitem marketplace network that includes the network 24 of FIG. 1, anexchange item (EI) issuing server 920, and EI trusted module 922, amerchant server 924, the marketplace database 20 of FIG. 1, themarketplace server 18 and FIG. 1, an EI buyer computing device 926, andan initial owner computing device 928. The EI issuing server 920 may beimplemented utilizing one or more of the brand server(s) 26 of FIG. 1,the processor server 28 of FIG. 1, and the distributor server 30 FIG. 1.The EI trusted module 922 may be implemented within one or more of theEI issuing server 920, the merchant server 924, and the marketplaceserver 18. The merchant server 924 may be implemented utilizing one ormore of the retail server 34 of FIG. 1 and the point-of-sale equipment32 of FIG. 1. The EI buyer computing device 926 may be implementedutilizing the buyer's computing device 16 of FIG. 4. The initial ownercomputing device 928 may be implemented utilizing the seller's computingdevice 12 of FIG. 4.

The marketplace database 20 includes a variety of databases, such as anagreement database 930, a user database 932, and an exchange itemdatabase 934. Each of the databases will be discussed in greater detailwith reference to following figures. The marketplace server 18 includesa variety of processing capability, which may be implemented as aplurality of processing modules. In an embodiment, the marketplaceserver 18 includes a set of processing 936, a sale processing 938, a useprocessing 940, and a rule processing 942. Each of the processingmodules will be discussed in greater detail with reference to followingfigures.

The EI buyer computing device 926 includes a digital wallet 944 and theinitial owner computing device 928 includes another digital wallet 946.Each of the digital wallets 944-946 is utilized to store a variety ofinformation associated with one or more exchange items, such as balanceinformation, pricing information, history of sale, brand affiliation,rules, conditions, use options, owner information, and securityinformation to ensure trust of the content of the digital wallet.

FIG. 7A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes an EI distributor 800,the seller's computing device 12, the MP server(s) 18, the database 20,the buyer's computing device 16, and a retailer computing device 802.Alternatively, the MP server may include the database 20, where thevirtual marketplace of exchange items 22 is stored as one or moretransaction blockchains of a secure custody protocol. The EI distributor800 may be implemented utilizing one or more of the distributor servers30 of FIG. 1, the brand server(s) 26 of FIG. 1, the MP server 18, and amerchant server (e.g., any entity acting on behalf of a brand in adistributor role). The retailer computing device 802 may be implementedutilizing one or more of the point-of-sale (POS) equipment 32 of FIG. 1,a merchant server, and the retail servers 34 of FIG. 1. The seller'scomputing device 12 includes the marketplace interface 142. The buyer'scomputing device 16 includes the marketplace interface 142 and the flashmemory 92 of FIG. 2. The marketplace interface 142 includes the mobileapp 198 of FIG. 4. The exchange item marketplace network functions togenerate a transactions blockchain while facilitating a plurality ofexchange item transactions. For example, a transactions blockchain ismaintained for each exchange item. As another example, the transactionsblockchain is maintained for a plurality of exchange items. As yetanother example, a single transactions blockchain is maintained for allthe exchange items for the entire virtual marketplace of exchange items22. The transactions blockchain includes a block associated with eachtransaction of the plurality of exchange item transactions. Each blockincludes a header section and a transaction section. A structure of thetransactions blockchain is discussed in greater detail with reference toFIGS. 7B-C.

In an example of operation of the generating of the transactionsblockchain, the EI distributor 800 generates a block 0 of thetransactions blockchain to establish exchange item (EI) information whendetermining to offer an exchange item for sale. The determining may bebased on one or more of receiving a purchase request from the seller'scomputing device 12, receiving a bulk EI creation request, receiving theEI information from one or more of a branded company server and aprocessor service, and interpreting a schedule. For example, the EIdistributor 800 determines to establish the EI information whenreceiving, via the processor service, EI information for a plurality ofexchange items from the branded company server. As another example, theEI distributor 800 determines to establish the EI information whenreceiving, via a retail point-of-sale device, a purchase request for theEI from the seller's computing device 12.

Having determined to offer the EI for sale, the EI distributor 800obtains the EI information. The obtaining includes receiving the EIinformation from the processor service and generating the EIinformation. The generating the EI information includes obtaining one ormore of available balance, serial number, personal identification number(PIN), brand, EI type, expiration date, pricing approach, purchaserestrictions, a hash of one or more of the elements of the EIinformation (e.g., a secure hash of the EI type using a private key of aprivate/public key pair of the brand server(s) 26), and the public keyof the private/public key pair of the brand server(s) 26. Havingobtained the EI information, the EI distributor 800 generates the block0 to include the EI information.

The generating of the block 0 includes populating the block zero with arepresentation of the EI information and establishing trust for theblock 0 utilizing a trust approach. The trust approach includes at leastone of a digital signature approach utilizing a private key of aprivate/public key pair of the EI distributor 800 and encrypting the EIinformation utilizing the private key of the private/public key pair ofthe EI distributor 800 to produce the representation of the EIinformation. For example, the EI distributor 800 encrypts the EIinformation and the public key of the EI distributor 800 utilizing theprivate key of the EI distributor 800 to produce the transaction sectionof the block 0 when utilizing the encryption trust approach. As anotherexample, the EI distributor 800 utilizes the private key of the EIdistributor 800 to generate a digital signature over the EI informationand the public key of the EI distributor 800 to produce the transactionsection of the block 0.

When receiving the EI purchase request from the seller's computingdevice 12, the EI distributor 800 generates a block 1 of the EItransactions chain to indicate that the seller's computing device 12 ispurchasing the EI from the EI distributor 800, where the block 1 ischained to the block 0 in accordance with a trusted chaining approach,and where the block 1 is generated utilizing the trust approach (e.g.,as utilized when generating the block 0). The trusted chaining approachis discussed in greater detail with reference to FIG. 7C.

The generating of the block 1 includes generating seller to distributorpayment information 1 (e.g., purchase price of this transaction, atimestamp of this transaction, purchaser identifier, and the transactionportion of the previous block), and establishing trust for the block 1utilizing the trust approach. For example, the EI distributor 800obtains a public key of a private/public key pair of the seller'scomputing device 12, encrypts the seller to distributor paymentinformation 1 and the public key of the seller's computing device 12utilizing the private key of the EI distributor 800 to produce thetransaction portion of the block 1 when utilizing the encryption trustapproach. As another example, the EI distributor 800 utilizes theprivate key of the EI distributor 800 to generate a digital signatureover the seller to distributor payment information 1 and the public keyof the seller's computing device 12 to produce the transaction sectionof the block 1.

Having generated the block 1 chained to the block 0, the EI distributor800 issues secure EI information 804 to the seller's computing device12. The issuing includes generating the secure EI information 804 toinclude the EI transactions chain (e.g., blocks 0-1) and sending thesecure EI information 804 to the seller's computing device 12.

When determining to offer the EI for sale via the virtual marketplace ofexchange items 22, the seller's computing device 12 issues secure EIinformation 806 to the MP servers 18, where the secure EI information806 includes one or more of the secure EI information 804 and a requestto sell the EI via the virtual marketplace of exchange items 22. Havingreceived the secure EI information 806, MP servers 18 communicatespricing information 808 with the seller's computing device 12, where thepricing information 808 includes one or more of a desired price, adesired price range, a recommended price range, a recommended price, anda confirmed price.

Having communicated the confirmed price, the seller's computing device12 and the MP servers 18 communicates secure sale information 810. Forexample, the MP servers 18 updates inventory information 809 (e.g.,brand, balance, price, expiration date, volume, pricing rules by brand,etc.) to provide a representation of the EI for storage in the database20 based on the transaction portion of the block 1, the MP servers 18provides a public key of a private/public key pair of the MP servers 18to the seller's computing device 12, and the seller's computing device12 generates a block 2 of the EI transactions chain to indicate that theMP servers 18 is representing the EI for purchase by a buyer's computingdevice 16, where the block 2 is chained to the block 1 in accordancewith the trusted chaining approach, and where the block 2 is generatedutilizing the trust approach (e.g., as utilized when generating theblock 1).

The generating of the block 2 includes generating a marketplace toseller representation and/or payment information 2 (e.g., desired price,a timestamp of this transaction, purchaser identifier, and thetransaction portion of the previous block), and establishing trust forthe block 2 utilizing the trust approach. For example, the seller'scomputing device 12 obtains the public key of a private/public key pairof the MP servers 18, encrypts the seller representation and/or paymentinformation 2 and the public key of the MP servers 18 utilizing theprivate key of the seller's computing device 12 to produce thetransaction section of the block 2 when utilizing the encryption trustapproach. As another example, the seller's computing device 12 utilizesthe private key of the seller's computer device 12 to generate a digitalsignature over the seller representation and/or payment information 2and the public key of the MP servers 18 to produce the transactionportion of the block 2.

Having generated the block 2 chained to the block 1, the seller'scomputing device 12 issues the secure sale information 810 to the MPservers 18. The issuing includes generating the secure sale information810 to include the EI transactions chain (e.g., blocks 0-2) and sendingthe secure sale information 810 to the MP servers 18.

When determining to purchase the EI for sale via the virtual marketplaceof exchange items 22, the buyer's computing device 16 issues an EIpurchase request 812 to the MP servers 18, where the EI purchase request812 includes a request to purchase the EI (e.g., buyer's computingdevice 16 identifier, public key of a private/public key pair of thebuyer's computing device 16, a purchase price, etc.). Having receivedthe EI purchase request 812, the MP servers 18 communicate secure buyerwallet information 814 with the buyer's computing device 16. Forexample, the buyer's computing device 16 sends payment instructions tothe MP servers 18 (e.g., purchase price, payment account information),the MP servers 18 generates a block 3 of the EI transactions chain toindicate that the buyer's computing device 16 is purchasing the EI forthe purchase price amount, where the block 3 is chained to the block 2in accordance with the trusted chaining approach, and where the block 3is generated utilizing the trust approach (e.g., as utilized whengenerating the block 2).

The generating of the block 3 includes generating buyer to marketplacepayment information 3 (e.g., a confirmed purchase price, paymentinstructions, a timestamp of this transaction, purchaser identifier, andthe transaction portion of the previous block), and establishing trustfor the block 3 utilizing the trust approach. For example, the MPservers 18 obtains the public key of the private/public key pair of thebuyer's computing device 16, encrypts the buyer to marketplace paymentinformation 3 and the public key of the buyer's computing device 16utilizing the private key of the MP servers 18 to produce thetransaction section of the block 3 when utilizing the encryption trustapproach. As another example, the MP servers 18 utilizes the private keyof the MP servers 18 to generate a digital signature over the buyer tomarketplace payment information 3 and the public key of the buyer'scomputing device 16 to produce the transaction section of the block 3.

Having generated the block 3 chained to the block 2, the MP servers 18issues secure buyer wallet information 814 to the buyers computingdevice 16. The issuing includes generating the secure buyer walletinformation 814 to include the EI transactions chain (e.g., blocks 0-3)and sending the secure buyer wallet information 814 to buyer's computingdevice 16, where the mobile app 198 facilitates storage of thetransactions chain as a secure EI record 822 in the flash memory 92.

When the buyer's computing device 16 determines to utilize the EI forpayment of a transaction with the retailer computing device 802, thebuyer's computing device 16 sends a transaction request 816 to theretailer computing device 802, where the transaction request 816includes one or more of a retail transaction identifier of thetransaction with the retailer computing device 802, and paymentinstructions that identifies the EI.

Having received the transaction request 816, the retailer computingdevice 802 and the buyer's computing device 16 communicate securebalance verification 818. The communicating of the secure balanceverification information 818 includes the buyer's computing device 16sending one or more of the secure EI record 822 (e.g., blocks 0-3) tothe retailer computing device 802 and the public key of theprivate/public key pair of the MP servers 18.

Having received the secure EI record 822, the retailer computing device802 verifies that a sufficient balance level is associated with thesecure EI record 822 to facilitate completion of the transaction request816. For example, the retailer computing device 802 decrypts the securetransaction section of the secure EI record 822 utilizing the public keyof the MP servers 18 to reveal the balance level and a public key of thebuyer's computing device 16 for verification with a public key receiveddirectly from the buyer's computing device 16. The retailer computingdevice 802 indicates favorable verification when the revealed balancelevel is sufficient and the received public key from the buyer'scomputing device 16 compares favorably (e.g., substantially the same) tothe revealed public key from the secure EI record 822. As anotherexample, the retailer computing device 802 verifies a signature over thesecure transaction portion of the secure EI record 822 utilizing thepublic key of the MP servers 18 to verify the balance level and toverify the public key of the buyer's computing device 16. The retailercomputing device 802 indicates favorable verification when the verifiedbalance level is sufficient and the public key from the buyer'scomputing device 16 is verified from the secure EI record 822. As yetanother verification example, the retail computing device 802 decryptsthe hash of the one or more of the elements of the EI information usingthe private key of the EI distributor 800 (e.g., or a brand server(s)26) and indicates favorable verification when the decrypted hash issubstantially the same as a calculated hash over the one or more of theelements of the EI information. As such, the EI can be considered alegitimately issued EI from the brand server(s) 26 (e.g., from the brandowner).

When the verifications are favorable, the retailer computing device 802and the buyer's computing device 16 communicate secure transactioncompletion 820. For example, the buyer's computing device 16 sendspayment instructions to the retailer computing device 802 (e.g.,purchase price, EI information), the buyer's computing device 16generates a block 4 of the EI transactions chain to indicate that thebuyer's computing device 16 is utilizing the EI for the purchase priceamount, where the block 4 is chained to the block 3 in accordance withthe trusted chaining approach, and where the block 4 is generatedutilizing the trust approach (e.g., as utilized when generating theblock 3).

The generating of the block 4 includes generating buyer to retailerpayment information 4 (e.g., a confirmed purchase price, paymentinstructions utilizing the EI, a timestamp of this transaction,purchaser identifier, and the transaction portion of the previousblock), and establishing trust for the block 4 utilizing the trustapproach. For example, the buyer's computing device 16 obtains thepublic key of the private/public key pair of the retailer computingdevice 802, encrypts the buyer to retailer payment information 4 and thepublic key of the retailer computing device 802 utilizing the privatekey of the buyer's computing device 16 to produce the transactionsection of the block 4 when utilizing the encryption trust approach. Asanother example, the buyer's computing device 16 utilizes the privatekey of the buyer's computing device 16 to generate a digital signatureover the buyer to retailer payment information 4 and the public key ofthe retailer computing device 802 to produce the transaction section ofthe block 4.

Having generated the block 4 chained to the block 3, the buyer'scomputing device 16 issues the secure transaction completion 820 to theretailer computing device 802. The issuing includes generating thesecure transaction completion 820 to include the EI transactions chain(e.g., blocks 0-4) and sending the secure transaction completion 820 tothe retailer computing device 802, where the mobile app 198 mayfacilitate storage of an updated transactions chain as an updated secureEI record 822 in the flash memory 92. Alternatively, or in addition to,each of the seller's computing device 12, the MP servers 18, and thebuyer's computing device 16 may validate information within the EItransactions chain by validating the chaining of each block to a nextblock utilizing the trusted chaining approach and may further validateinformation with the EI transactions chain by validating integrity ofthe transaction section of one or more of the blocks utilizing the trustapproach (e.g., verifying a signature, decrypting an encryptedtransaction to reveal a public key for verification).

In another example of operation of the generating of the transactionsblockchain, at least one of the EI distributor 800, the seller'scomputing device 12, and the MP server(s) 18, authenticates value of anexchange item to produce an authenticated value of the exchange item.The exchange item includes one of a closed loop financial instrument anda digital good. The authenticating of the value includes a variety ofauthenticating approaches.

A first authenticating approach includes the seller's computing device12 authenticating the value of the exchange item via a communicationwith a brand server (e.g., issue an authentication request, interpret areceived verification response to identify an available balance of theexchange item associated with the brand server), generating a secureexchange item package, and securely passing, by the seller's computingdevice 12 to the marketplace servers 18, control over the secureexchange item package such that the marketplace server 18 obtains thecontrol over the secure exchange item package. The securely passingincludes updating a transaction section of the secure exchange itempackage by including a public key of a recipient device (e.g., themarketplace servers 18) of the secure exchange item package and signingthe secure exchange item package by a transferring device (e.g., theseller's computing device 12) of the secure exchange item package. Thesecure exchange item package includes a header section and a transactionsection. The secure exchange item package is discussed in greater detailwith reference to FIG. 7C. A second authenticating approach includes theMP server(s) 18 authenticating the value of the exchange item via thecommunication with the brand server, generating the secure exchange itempackage, and obtaining control over the secure exchange item package asa result of being an originator of the secure exchange item package.

With the authenticated value of the exchange item produced, themarketplace servers 18 obtains control over the secure exchange itempackage, where the secure exchange item package includes identity of theexchange item, identity of an authenticated owner of the exchange item,identity of the marketplace server, and the authenticated value (e.g.,face value of the exchange item or remaining balance of the exchangeitem) of the exchange item and where only a device possessing controlover the secure exchange item package may modify the secure exchangeitem package.

As an example of the obtaining of the control, the marketplace servers18 receives from the seller's computing device 12, a request to sell theexchange item (e.g., receives the secure EI information 806). Inresponse to valid processing of the request to sell (e.g., communicatingpricing information 808), the seller's computing device 12 securelypasses, to the marketplace servers 18, control over the secure exchangeitem package (e.g., communicates secure sale information 810). Havingobtained control, the marketplace servers 18 lists a representation ofthe exchange item for sale by storing associated inventory information809 in the database 20 to update the virtual marketplace of exchangeitems 22.

With the exchange item represented within the virtual marketplace ofexchange items 22, the marketplace server 18 receives, from the buyer'scomputing device 16, a request to purchase the exchange item (e.g., theEI purchase request 812). Having received the request to purchase theexchange item, the marketplace servers 18, in response to validprocessing of the request to purchase the exchange item (e.g.,exchanging secure buyer wallet information 814), securely passes to thebuyer computing device 16, control over the secure exchange item package(e.g., via the secure buyer wallet information 814). Having received thesecure buyer wallet information 814, the mobile app 198 stores thesecure buyer wallet information 814 as the secure EI record 822 in theflash memory 92.

For use of the exchange item (e.g., as initiated with the transactionrequest 816), the buyer computing device 16 securely passes, to theretailer computing device 802 (e.g., the merchant server), control overthe secure exchange item package. The use may further include theretailer computing device 802 into verifying that the balance of theexchange item is sufficient for a purchase transaction by communicatingsecure balance verification 818 with the buyer's computing device 16.

With control over the secure exchange item package, the merchant server(e.g., the retailer computing device 802) executes use of the exchangeitem by updating the value of the exchange item to produce an updatedvalue of the exchange item. For example, the retailer computing device802 subtracts an amount of the purchase transaction (e.g., for goodsprovided by a retailer to a user of the buyer's computing device 16)from the value of the exchange item to produce the updated value of theexchange item.

Having generated the updated value of the exchange item, the retailercomputing device 802 generates an updated secure exchange item package,where the updated secure exchange item package includes identity of theexchange item, identity of the merchant server, identity of the buyercomputing device, and the updated value of the exchange item. Havinggenerated the updated secure exchange item package, the merchant server(e.g., the retailer computing device 802) securely passes control overthe updated secure exchange item package to the buyer's computing device16 (e.g., by communicating the secure transaction completion 820).

Alternatively, or in addition to, for a second use of the exchange item,the buyer's computing device 16 securely passes, to a second merchantserver, control over the updated secure exchange item package. Thesecond merchant server executes the second use of the exchange item byupdating the updated value of the exchange item to produce a secondupdated value of the exchange item, generating a second updated secureexchange item package, where the second updated secure exchange itempackage includes identity of the exchange item, identity of the secondmerchant server, identity of the buyer's computing device 16, and thesecond updated value of the exchange item, and securely passes, to thebuyer's computing device 16, control over the second updated secureexchange item package.

FIG. 7B is a schematic block diagram of a transactions blockchain wherethe transactions blockchain includes a plurality of blocks. Thetransactions blockchain represents an exchange item (EI) transactionchain when the plurality of blocks include exchange item transactionsections. Each block includes a header section and a transactionsection. Each other portion links one block to other block in asequential fashion. The linking is discussed in greater detail withreference to FIG. 7C. The transaction section includes EI transactioninformation associated with an EI transaction between two or moreentities of an exchange item marketplace. For example, the block 0includes valuable establishment 0 transaction information with regardsto a genesis of a particular exchange item to be available to entitiesof the exchange item marketplace, the block 1 includes seller todistributor payment information 1 transaction information with regardsto the seller's computing device 12 purchasing the EI from the EIdistributor 800, the block 2 includes marketplace servers 18 to sellerrepresentation/payment information 2 transaction information withregards to the seller's computing device 12 offering the EI for saleutilizing the MP servers 18, the block 3 includes buyer to marketplacepayment information 3 transaction information with regards to thebuyer's computing device 16 purchasing the EI via the MP servers 18 fromthe seller's computing device 12, and the block 4 includes buyer toretailer payment information 4 transaction information with regards tothe buyer's computing device 16 utilizing the EI to complete a desiredpurchase transaction with the retailer computing device 802.

FIG. 7C is another schematic block diagram of a transactions blockchain.The transactions blockchain includes a plurality of blocks, where eachblock includes a secure exchange item package. Each secure exchange itempackage includes a header section and a transaction section. The headersection includes one or more of a nonce, a hash of a preceding block ofthe secure exchange item package, where the preceding block was undercontrol of a preceding device in a chain of control of the secureexchange item package, and a hash of a current block (e.g., a currenttransaction section) of the secure exchange item package, where thecurrent block is under control of a current device in the chain ofcontrol of the secure exchange item package. The transaction sectionincludes one or more of a public key of the current device, a signatureof the preceding device, payment information regarding a change ofcontrol from the preceding device to the current device, and exchangeitem information that includes at least some of the identity of theexchange item, a brand of the exchange item, time restrictions of theexchange item, a digital image of the exchange item, the authenticatedvalue, and use restrictions of the exchange item.

FIG. 7C further includes user devices 2-3 (e.g., the seller's computingdevice 12, the MP servers 18, the buyer's computing device 16, theretailer computing device 802) to facilitate illustration of generationof the secure exchange item package. Each user device includes a hashfunction, a signature function, and storage for a public/private keypair generated by the user device.

An example of operation of the generating of the secure exchange itempackage, when the user device 2 has control of the secure exchange itempackage and is passing control of the secure exchange item package tothe user device 3 (e.g., the user device 3 is transacting an exchangewith the user device 2), the user device 2 obtains the user 3 public keyfrom the user device 3, performs a hash function 2 over the user 3public key and the transaction 2 to produce a hashing resultant (e.g.,preceding transaction to user device 2) and performs a signaturefunction 2 over the hashing resultant utilizing a user 2 private key toproduce a user 2 signature. Having produced the user 2 signature, theuser device 2 generates the transaction 3 to include the user 3 publickey, the user 2 signature, user 3 payment to the user 2 information, andEI information 2-3. The user 3 payment to the user 2 informationincludes payment instructions from user 3 to user 2. The EI information2-3 includes an updated balance of the exchange item (e.g., after thetransaction between the user device 3 and the user device 2), a serialnumber of the exchange item, an expiration date of the exchange item, atype of the exchange item, a brand identifier, an image, a personalidentification number, and utilization rules for the exchange item.

Having produced the transaction 3 section of the block 3 (e.g., a secureexchange item package 3), a processing module (e.g., of the user device2, of the user device 3, of a transaction mining server, of themarketplace server 18) generates the header section by performing ahashing function over the transaction section 3 to produce a transaction3 hash, performing the hashing function over the preceding secureexchange item package (e.g., block 2) to produce a block 2 hash. Theperforming of the hashing function may include generating a nonce suchthat when performing the hashing function to include the nonce of theheader section, a desired characteristic of the resulting hash isachieved (e.g., a desired number of preceding zeros is produced in theresulting hash).

Having produced the secure exchange item package 3, the user device 2sends the secure exchange item package 3 to the user device 3. Havingreceived the secure exchange item package 3, the user device 3 validatesthe received secure exchange item package 3. The validating includes oneor more of verifying the user 2 signature over the preceding transactionsection (e.g., transaction 2) and the actual user 3 public key utilizingthe user 2 public key (e.g., a re-created signature function resultcompares favorably to user 2 signature) and verifying that an extracteduser 3 public key of the transaction 3 compares favorably to the user 3public key held by the user device 3. The user device 3 considers thereceived secure exchange item package 3 validated when the verificationsare favorable (e.g., the available balance of the exchange item istrusted).

FIG. 7D is a logic diagram of an embodiment of a method for generating atransactions blockchain. In particular, a method is presented for use inconjunction with one or more functions and features described inconjunction with FIGS. 1-6, 7A-C, and also FIG. 7D. The method includesstep 830 where a processing module of a computing device of one or morecomputing devices of an exchange item marketplace network authenticatesvalue of an exchange item to produce an authenticated value of theexchange item, where the exchange item includes one of a closed loopfinancial instrument and a digital good.

As an example of the authenticating the value of the exchange item, aseller device authenticates the value of the exchange item via acommunication with a brand server, generates a secure exchange itempackage, and securely passes, to the marketplace server, control overthe secure exchange item package such that the marketplace serverobtains the control over the secure exchange item package. The securelypassing includes updating a transaction section of the secure exchangeitem package by including a public key of a recipient device of thesecure exchange item package and signing the secure exchange itempackage by a transferring device of the secure exchange item package.The secure exchange item package includes a header section and atransaction section. As another example of the authenticating the valueof the exchange item, the marketplace server authenticates the value ofthe exchange item via a communication with the brand server, generatesthe secure exchange item package, and obtains control over the secureexchange item package as a result of being an originator of the secureexchange item package.

The method continues at step 832 where the marketplace server obtainscontrol over the secure exchange item package, where the secure exchangeitem package includes identity of the exchange item, identity of anauthenticated owner of the exchange item, identity of the marketplaceserver, and the authenticated value (e.g., face value of the exchangeitem and/or a remaining balance of the exchange item) of the exchangeitem and where only a device possessing control over the secure exchangeitem package may modify the secure exchange item package. As an exampleof the obtaining of the control, the marketplace server receives, fromthe seller device, a request to sell the exchange item and in responseto valid processing of the request to sell, the seller device securelypasses, to the marketplace server, control over the secure exchange itempackage.

The method continues at step 834 where the marketplace server receives,from a buyer device, a request to purchase the exchange item. Inresponse to valid processing of the request to purchase the exchangeitem, the method continues at step 836 where the marketplace serversecurely passes, to the buyer device, control over the secure exchangeitem package. For use of the exchange item, the method continues at step838 where the buyer device securely passes, to a merchant server,control over the secure exchange item package.

The method continues at step 840 where the margin server executes use ofthe exchange item by updating the value of the exchange item to producean updated value of the exchange item (e.g., deducting a purchase priceof a purchase transaction from the value of the exchange item to producethe updated value the exchange item). The method continues at step 842where the merchant server generates an updated secure exchange itempackage, where the updated secure exchange item package includesidentity of the exchange item, identity of the merchant server, identityof the buyer device, and the updated value of the exchange item. Themethod continues at step 844 where the merchant server securely passes,to the buyer device, control over the updated secure exchange itempackage.

Alternatively, or in addition to, for a second use of the exchange item,the buyer device securely passes, to a second merchant server, controlover the updated secure exchange item package. The second merchantserver executes the second use of the exchange item by updating theupdated value of the exchange item to produce a second updated value ofthe exchange item, generates a second updated secure exchange itempackage, where the second updated secure exchange item package includesidentity of the exchange item, identity of the second merchant server,identity of the buyer device, and the second updated value of theexchange item, and securely passing, to the buyer device, control overthe second updated secure exchange item package.

The method described above in conjunction with one or more of theprocessing module, the seller device, the marketplace server, the buyerdevice, the merchant server, the second merchant server, canalternatively be performed by other modules of the exchange itemmarketplace network or by other devices. In addition, at least onememory section (e.g., a non-transitory computer readable storage medium,a computer readable memory) that stores operational instructions can,when executed by one or more processing modules of one or more computingdevices of the exchange item marketplace network, cause the one or morecomputing devices to perform any or all of the method steps describedabove.

FIG. 7E is a logic diagram of another embodiment of a method forgenerating a transactions blockchain. In particular, a method ispresented for use in conjunction with one or more functions and featuresdescribed in conjunction with FIGS. 1-6, 7A-D, and also FIG. 7E. Themethod includes step 850 where a processing module of a computing device(e.g., of an exchange item origination entity) of one or more computingdevices of an exchange item marketplace network generates an originationblock of an EI transaction chain, where the EI origination entity signsa transaction portion of the origination block, and where thetransaction portion indicates EI information of an associated EI. Forexample, the origination entity generates value establishmentinformation in accordance with a trust approach (e.g., self-signing overthe value establishment information to produce the transaction portion,signing the value establishment information, that includes a public keyof a private/public key pair of the EI origination entity, utilizing theprivate key to produce the transaction portion).

When receiving an EI purchase request from a seller computing device,the method continues at step 852 where a processing module of an EIdistribution entity generates a first block of the EI transactionschain, where the EI distribution entity signs the transaction portion ofthe first block, where the transaction portion indicates that the sellercomputing device is purchasing the EI from the distribution entity, andwhere the first block is chained to the origination block in accordancewith a chained security approach (e.g., hash of transaction portion,hash of a previous block). The EI distribution entity may be implementedutilizing the EI origination entity. For example, the EI distributionentity signs the transaction portion utilizing a private key of aprivate/public key pair of the seller computing device to produce thetransaction portion of the first block.

When transacting a representation of the EI with a marketplace server,the method continues at step 854 where the seller computing devicegenerates a second block of the EI transactions chain, where the sellercomputing device signs a transaction portion of the second block, wherethe transaction portion indicates that the MP server is representing theEI for the seller computing device, and where the second block ischained to the first block in accordance with the chained securityapproach. For example, the MP server receives secured EI informationfrom the seller computing device (e.g., an offer for sale), providespricing information to the seller computing device, receives a confirmedprice from the seller computing device, issues secure sale informationto the seller computing device, and updates inventory information withina virtual exchange item marketplace, where the secure sale informationincludes the second block of the EI transactions chain and a public keyof the MP server.

When receiving a purchase request for the EI from a buyer computingdevice, the method continues at step 856 where the MP server generates athird block of the EI transactions chain, where the MP server signs atransaction portion of the third block, where the transaction portionindicates that the buyer computing device is purchasing the EI from theseller computing device via the marketplace, and where the third blockis chained to the second block in accordance with the chained securityapproach. For example, the buyer computing device issues an EI purchaserequest to the MP server based on received inventory information fromthe MP server, the MP server generates secure buyer wallet information,the buyer computing device stores a security EI record, where the securebuyer wallet information includes the third block of the EI transactionschain and the secure EI record includes the EI transactions chain. Forinstance, the MP server signs a public key of the buyer computing deviceand the transaction portion utilizing a private key of a private/publickey pair of the MP server to produce the transaction portion of thethird block.

When utilizing the EI for payment in a purchasing transaction with aretailer computing device, the method continues at step 858 where thebuyer computing device generates a fourth block of the EI transactionschain, where the buyer computing device signs a transaction portion ofthe fourth block, where the transaction portion indicates that the buyercomputing device is utilizing the EI for payment in the purchasingtransaction, and where the fourth block is chained to the third block inaccordance with the chained security approach. For example, the buyercomputing device issues a transaction request to the retailer computingdevice, the retailer computing device exchanges secure balanceinformation with the buyer computing device (e.g., verifies the trust ofthe EI transactions chain, where the EI transactions chain indicates anavailable balance of the EI verifying that an available balance issufficient), the retailer computing device issues secure transactioncompletion information to the buyer computing device, where the securetransaction completion information includes the fourth block of the EItransactions chain. The buyer computing device signs the public key ofthe retailer computing device and the transaction portion to produce atransaction portion of the fourth block. Alternatively, or in additionto, each entity of the plurality of transactions may verify the EItransactions chain by verifying a stored public key matches to recoveredpublic keys when validating signatures over associated blocks.

The method described above in conjunction with the exchange itemorigination entity, the seller computing device, the buyer computingdevice, and the retailer computing device can alternatively be performedby other modules of the exchange item marketplace network or by otherdevices. In addition, at least one memory section (e.g., anon-transitory computer readable storage medium, a computer readablememory) that stores operational instructions can, when executed by oneor more processing modules of one or more computing devices of theexchange item marketplace network, cause the one or more computingdevices to perform any or all of the method steps described above.

FIG. 8A is a logic diagram of an embodiment of a method for utilizing anexchange item in an exchange item marketplace network. The methodincludes step 860 where a processing module (e.g., of a brand server, ofa marketplace server) creates one or more exchange items to be offeredfor sale through the exchange item marketplace network. The methodcontinues at step 862 where an initial owner acquires at least one ofthe EIs. The method continues at step 864 where a processing module ofthe exchange item marketplace network establishes initial conditions.Conditions includes types of conditions and values for the types ofconditions. For example, a weather condition is associated with a valueof a current temperature. As another example, a sports team score isassociated with a particular game outcome. Other examples of conditiontypes include stock prices, world events, purchase history of usersassociated with the exchange item marketplace, pricing historyassociated with exchange items, a physical location, a customer name, amerchant name, a brand-name, a date, a time, etc.

The establishing of the conditions includes utilizing thepredetermination, interpreting the lookup, interpreting a queryresponse, receiving the conditions, identifying the conditions based onor more of identification of the initial owner, identification of thebrand of the EI, an EI type indicator, and EI serial number, and an EIutilization rule, etc. For example, the marketplace server performs alookup based on a serial number of the exchange item to establish theinitial conditions.

The method continues at step 866 where the processing module determineswhether the EI has been used (e.g., redeemed, utilized for making apurchase, bartered, etc.). The determining includes interpreting astatus associated with the EI of an exchange item database, interpretinga received a use message, receiving purchase transaction information,etc. the method branches to step 874 when the processing moduledetermines that the EI has not been used. The method continues to step868 when the processing module determines that the EI has been used.

When the EI has been used, the method continues at step 868 where theprocessing module processes the EI use. The processing includes one ormore of facilitating completion of a purchase transaction, facilitatingpayment distribution, and updating the exchange item database toindicate the use. The method continues at step 870 where the processingmodule determines whether the EI is exhausted (e.g., no value left). Thedetermining includes comparing a balance value associated with the EI toa minimum threshold level (e.g., zero dollars). For example, theprocessing module indicates that the EI has been exhausted when thebalance value is zero. The method looks back to step 866 when the EI isnot exhausted. The method continues to step 872 when the EI is exhaustedwhere the EI is retired. Alternatively, and in accordance with a ruleassociated with exchange item, the processing module maintains the zerobalance exchange item without retiring the exchange item (e.g., to keepopen an opportunity to refresh the exchange item). The retiring includesthe processing module updating the exchange item database to indicatethat the EI has been exhausted and retired from use.

When the EI has not been utilized, the method continues at step 874 witha processing module determines whether the EI is to be offered for sale.The determining includes receiving a request to offer the EI for sale,interpreting a rule with regards to sale, interpreting a statusassociated with the EI, and receiving a purchase request for the EI. Themethod branches to step 878 when the EI is not to be offered for sale.The method continues to step 876 when the EI is to be offered for salewhere the processing module posts the EI in the marketplace. Forexample, the processing module updates the exchange item database toindicate that the EI is for sale.

The mother continues at step 878 where the processing module determineswhether the EI has been sold. The determining includes one or more ofreceiving purchase transaction information, interpreting a request forpurchase of the EI, and interpreting a status associated with the EI inthe exchange item database. The method branches to step 882 when the EIhas not been sold. The method continues to step 880 when the EI has beensold where the processing module processes the sale and updatesinformation. For example, the processing module updates the exchangeitem database to indicate that the EI has been sold, the purchaseamount, and identification of the (new) owner.

The method continues at step 882 where the processing module updates theconditions. For example, the processing module obtains updated date andtime information, sports scores, stock market information, world eventsinformation, and weather information. With the conditions updated,utilization and sale of other exchange items may be affected asdifferent use rules associated with the different exchange items mayunable shifts in parameters associated with exchange items. For example,an additional discount for a particular branded exchange item may beenabled when a temperature value of a temperature condition is less thana low threshold value. As another example, a balance of another exchangeitem may be increased by 10% for a two-hour time frame when a localbaseball team wins a game and the exchange item is associated with abrand of the local baseball team. Having updated the conditions, themethod loops back to step 866

FIG. 8B is a logic diagram family of an embodiment of a method forutilizing rules in an exchange item (EI) marketplace network. A rule isassociated with utilization of an exchange item. The rule may be imposedby one or more of an issuing brand, a merchant, an alternative brand,and by a marketplace server of the exchange item marketplace. A rulespecifies allowable values or ranges of values of parameters associatedwith an exchange item is a function of one or more conditions and of oneor more use options. Rules be imposed independently (e.g., alone withoutany interaction with other rules), in series (e.g., first rule invokedfollowed by a second rule invoked), in parallel (e.g., operating two ormore rules together, and may interact where a first rule status may beutilized by a second rule), or in a nested fashion (e.g., where a ruleis triggered when a value associated with a preceding rule comparesfavorably to a trigger threshold level). Each EI rule is associated witha rule lifecycle, which includes creation of the EI rule, and mayinclude invoking of the EI rule and updating of the EI rule and/or of anassociated EI of the EI rule (e.g., updating a marketplace serverdatabase).

A method associated with the creation of the EI rule includes step 890where a processing module (e.g., by a brand server, by a marketplaceserver) determines whether an exchange item (0) rule has been invoked.The determining may be based on one or more of interpreting values ofconditions in accordance with the EI rule, receiving a messageindicating that the rule has been invoked, and detecting an activityassociated with the invoking of the rule. The method branches to steps892 and 894 when the EI rule has been invoked. The method branches tostep 902 when the EI rule has not been invoked where the processingmodule determines whether the EI rule has changed. The determining maybe based on one or more of interpreting a change flag, receiving achange message, observing activity associated with a change of the rule,and comparing a previous EI rule to the EI rule. The method continues tostep 904 when the EI rule has not been changed where the processingmodule determines whether the EI rule has expired (e.g., detecting thatan active timeframe associated with the EI rule has elapsed). The methodloops back to step 890 when the EI rule has not expired.

When the EI rule has been invoked, the method continues at step 892where the processing module notifies a current owner of the invoked EIrule (e.g., issuing a message to a brand server that established (i.e.,owner) the rule) and the method continues at step 894 where theprocessing module updates the EI based on the invoked EI rule. Theupdating includes modifying a record of the EI in the marketplace serverdatabase immediately or upon receiving a permissions grant from theowner, modifying the record of the EI in the marketplace serverdatabase.

The method continues at step 896 where the processing module determineswhether the EI rule has been revoked. The determining may be based onone or more of interpreting updated conditions associated with the EIrule and indicating that the EI rule has been revoked and receiving amessage indicating that the EI rule has been revoked (e.g., from a brandserver). The method loops back to step 890 when the EI rule has not beenrevoked. The method continues to steps 898 and 900 when the EI rule hasbeen revoked. The method continues at step 898 where the processingmodule notifies the current owner of the revoked EI rule (e.g., issuingan EI revoked message) and updates the associated EI based on therevoked EI rule (e.g., updates the marketplace server database).

A method associated with the invoking of the EI rule includes step 906where the processing module tracks conditions for exchange items of arule set. For example, the processing module receives conditions dataassociated with a plurality of conditions types and maps the conditionsdata a plurality of exchange items associated with rules that rely onthe conditions to activate a course of action. The method continues atstep 908 where the processing module, per exchange item, determines whena condition conforms to a rule to invoke the rule. For example, theprocessing module indicates to invoke the rule when a condition of therule meets a threshold level.

A method associated with the updating of the EI rule includes step 910where the marketplace server takes control of the exchange item. Thetaking of control includes invoking a rule that includes grantingupdating authority for the marketplace server. With the authority toupdate the exchange item in the marketplace server database, themarketplace server may modify a rule, add a rule, delete a rule, addconditions associated with a rule, delete conditions associated with arule, and modify conditions associated with a rule.

The method continues at step 912 where the marketplace server updatesthe exchange item. For example, the marketplace server recovers aportion (e.g., a single transaction blockchain including a ledger of allexchange items) of the marketplace server database and modifies therecovered portion (e.g., modifies the blockchain) to produce an updatedportion of the marketplace server database. The method continues at step914 where the marketplace server signs the updated exchange item. Forexample, the marketplace server utilizes a private key of apublic/private key pair of the marketplace server to electronically signthe updated exchange item to produce a signature of the marketplaceserver. The method continues at step 916 where the marketplace serverreturns control of the signed updated exchange item. For example, themarketplace server stores the signed updated exchange item into themarketplace or database and pushes the signed updated exchange item toone or more entities of the exchange item marketplace network. Forinstance, the marketplace server sends the signed updated exchange itemto a computing device associated with purchase of the exchange item. Asanother instance, the marketplace server sends the signed updatedexchange item to a brand server associated with the exchange item. Sucha signed updated exchange item is illustrated where exchange item serialnumber 5, that is associated with owner AA, includes conditions e3, f6,p5 that is associated with the exchange item 5, and that now follows arule set 4.

FIG. 8D is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the initial ownercomputing device 928 of FIG. 6, the EI issuing server 920 of FIG. 6, theEI trusted module 922 of FIG. 6, the marketplace server 18 of FIG. 6,and the marketplace database 20 of FIG. 6. Entities of the exchange itemmarketplace network may be operably coupled through the network 24 ofFIG. 6 or may be directly connected to each other. The exchange itemmarketplace functions to establish agreements and set up exchange items.Such agreements include terms for one or more of creation of exchangeitems (EI), creation of EI rules for the exchange items, identificationof condition types and condition values to be utilized in conjunctionwith the EI rules, and facilitating payment for sale and/or utilizationof an exchange item. The agreements may involve two or more parties,such as a brand, a merchant, and an alternative brand. For example, anagreement between a brand and a merchant associated with the brandindicates a discount range associated with a particular exchange item.As another example, an agreement between a brand and the alternativebrand indicates which products may be purchased using an exchange itemnot associated with the product. Agreement information includes one ormore agreement points of each agreement (e.g., value, discount, balance,permissions, etc.).

In an example of operation of the establishing of the agreements andsetting up of the exchange items, the setup (i.e., or set up) processing936 of the marketplace server 18 establishes the agreement database 930.The establishing includes receiving agreement information and updatingthe agreement database 930 within the marketplace database 20. Forexample, the marketplace server 18 issues a query to one or more of theEI issuing server 920, another issuing server, a merchant server,another merchant server; and receives a query response. As anotherexample, the marketplace server 18 receives an unsolicited messageincluding the agreement information. Having received the agreementinformation, the marketplace server updates the agreement database 930.The agreement database 930 correlates issuer information, merchantinformation, and agreement information. For example, the agreementdatabase 930 associates issuer A_1 with a merchant A_1_n as bound by anagreement aa (e.g., including one or more agreement points).

Having established the agreements, the marketplace server 18 facilitatessetting up of the exchange items to include establishment of exchangeitem (EI) rules. An initiating entity establishes a first rule for a newexchange item. The initiating entity includes at least one of the EIissuing server 920 and the set up processing 936 of the marketplaceserver 18. The first rule is associated with establishment of a securityapproach to ensure that and subsequent rules associated with the EI canbe trusted by all marketplace participants as time proceeds. Forexample, the EI issuing server 920 establishes trust information 954 toinclude a first contract block of a contract blockchain, whereprivate/public key pairs are utilized to ensure trust as previouslydiscussed with reference to FIGS. 7A-E. The first contract blockestablishes the EI issuing server 920 as the owner (e.g., a root of thecontract blockchain).

The initiating entity further establishes the new exchange item. Forexample, the EI issuing server 920 establishes EI information 950 (e.g.,value, type, issuance date, expiration date, use parameters, etc.). Theinitiating entity further establishes content of the first rule, andfurther content of other rules as an EI rule set 952. For example, theEI issuing server 920 utilizes a fourth set of EI rules and an EI ofserial number 5 for issuer B_K (e.g., identity of the EI issuing server920) to include EI 05 info. The EI005 is to be for sale and is bound bya fourth set of EI rules which are associated with conditions e3, f6, p5in accordance with use options of the issuer B_K. Having obtained the EIinformation 950 and the EI rule set 952, the set up processing 936verifies the received EI information and set by exchanging set upverification 956 with the EI trusted module 922. For example, the EItrusted module 922 verifies the contract blockchain and sends anindication of a status of the verification to the marketplace server 18.

When the EI information 950 in the EI rule set 952 have been verified,set up processing 936 updates the exchange item database 934 of themarketplace database 20 with the EI information 950 in the EI rule set952. For instance, the setup processing 936 establishes the role of theexchange item database 934 associated with the EI serial number 005. Theset up processing 936 may further update the user database 932 toinclude a list of known users of the marketplace, a history of EIbuying, selling, and using. For example, the set up processing 936updates the user database 932 when the initial owner computing device928 (e.g., owner AA) purchases the new EI by exchanging set upinformation 958 with the marketplace server 18. The initial ownercomputing device 928 updates a digital wallet 946 of the initial ownercomputing device 928 with an owner table. The owner table includes oneor more of a list of EI serial numbers, and for each EI, an identifierof an issuer, associated EI information, use options, EI rulesassociated with the EI, and conditions associated with the EI.Alternatively, or in addition to, the marketplace server maintains acopy of the owner table in the marketplace database 20.

FIG. 8E is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the initial ownercomputing device 928 of FIG. 6, the EI buyer computing device 926 ofFIG. 6, the EI trusted module 922 of FIG. 6, the marketplace server 18of FIG. 6, and the marketplace database 20 of FIG. 6. The exchange itemmarketplace functions to process a sale of an exchange item (EI) fromthe initial owner computing device 928 to the EI buyer computing device926.

In an example of operation of the processing of the sale of the EIserial number 005 by the initial owner computing device 928 (e.g., ownerAA) the EI buyer computing device 926 (e.g., owner DZ), the saleprocessing 938 of the marketplace server 18 exchanges sale information966 with the initial owner computing device 928, where the saleinformation 966 includes one or more of the EI serial number 005, a saleprice, use options, a commission amount (e.g., to the marketplace), andcredit information (e.g., a 05 credit of generic value usable in themarketplace to purchase another EI or to be converted into another formof payment). The initial owner computing device 928 updates the digitalwallet 946 to indicate that the EI serial number 005 has been sold andthat the 05 credit is available.

The sale processing 938 further exchanges sale verification 968 with theEI trusted module 922. For example, the EI trusted module 922 verifiesthe contract blockchain and a transaction blockchain associated with theEI to ensure that the sale is within sale allowance parametersassociated with the EI as imposed by one or more of an agreement, and EIrule, conditions, and use options. When verified, the EI trusted module922 issues the sale verification 968 to the sale processing 938indicating that the sale is verified.

The sale processing 938 further exchanges purchase information 970 withthe EI buyer computing device 926, such that the EI buyer computingdevice 926 updates the digital wallet 944 indicating that owner DZ hasthe EI serial number 005. Having processed the sale of the EI 005, thesale processing 938 updates the marketplace database 20 indicating thatthe EI serial 005 is now associated with owner DZ and is not currentlyfor sale.

FIG. 8F is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the EI buyer computingdevice 926 of FIG. 6, the EI trusted module 922 of FIG. 6, the merchantserver 924 FIG. 6, the marketplace server 18 of FIG. 6, and themarketplace database 20 of FIG. 6. The exchange item marketplacefunctions to process use of an exchange item (EI) by the EI buyercomputing device 926 with the merchant server 924.

In an example of operation of the use of the EI, the EI buyer computingdevice 926 obtains EI info from the digital wallet 944 to issue buyeruse information 976 to the marketplace server 18 when desiring toutilize the exchange item (e.g., EI serial number 005) with a merchantassociated with the merchant server 924 for purchase of goods and/orservices. When receiving the buyer use information 976, the useprocessing 940 of the marketplace server 18 verifies the use byexchanging use verification 978 with the EI trusted module 922. The useverification 978 includes one or more of the buyer use information 976and an associated row of the exchange item database 934 associated withthe exchange item (e.g., the row associated with the exchange itemserial number 005). For example, the EI trusted module 922 verifies thatthe use of the EI compares favorably with the associated rules,conditions, and use options.

When receiving favorable use verification 978, the use processing 940exchanges merchant use information 980 with the merchant server 924 tocomplete the use of exchange item. Alternatively, the marketplace server18 receives the merchant use information 980 from the merchant server924 via the EI buyer computing device 926 as part of the buyer useinformation 976 (e.g., a secure blockchain element is generated by themerchant server 924 and communicated directly to the EI buyer computingdevice 926).

The merchant use information 980 includes one or more of the buyer useinformation 976, the use verification 978, and any additionalinformation to complete the use of the EI. Upon completion of the use ofthe EI, the use processing 940 updates the exchange item database 934indicating that the EI has been utilized (e.g., indicating an amount ofan outstanding balance utilized and a remaining available balance etc.).Alternatively, or in addition to, the use processing 940 performs amerchant verification process in accordance with a rule associated withthe exchange item. For example, the use processing 940 extracts securityinformation from the merchant use information 980, exchanges useinformation 978 with the EI trusted module 922, and interprets a useverification 978 response from the EI trusted module 922 to determinewhether the merchant server 924 is verified (e.g., non-fraudulent). TheEI trusted module 922 may verify the merchant server 924 by a variety ofapproaches including accessing a database of fraudulent merchants,invoking a rule of an associated exchange item to test a pluralityparameters associated with the merchant use information 980, andrequesting that the merchant server 924 electronically sign a message toverify that the merchant server 924 holds a correct private keyassociated with a previously verified merchant server 924.

FIG. 8G is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the EI buyer computingdevice 926 of FIG. 6, the EI issuing server 920, the EI trusted module922 of FIG. 6, the marketplace server 18 of FIG. 6, and the marketplacedatabase 20 of FIG. 6. The exchange item marketplace functions toprocess rules associated with an exchange item (EI).

In an example of operation of the processing of the rules, the ruleprocessing 942 of the marketplace server 18 records conditions for aplurality exchange items. A condition of the conditions for theplurality of exchange items further includes one of a range of time, arange of dates, a geographic location, a building address, a list ofitems, a user tendency profile, and a user loyalty profile. For example,the marketplace server 18 obtains the condition from a correspondingcondition source.

For an exchange item of the plurality of exchange items, where theexchange item has a quantifiable value (e.g., valid tender, offeredsomething formally in writing, offered a sum for a settlement, same asmoney, offer made to settle something), a serial number, and a currentowner, the rule processing 942 determines whether a correspondingcondition of the exchange item is compliant with one or more rules of anapplicable set of rules (e.g., a contract regarding the exchange itemfrom the issuer, where a set of rules is utilized for each EI, or for agroup of EIs, for each owner, by brand, by retailer, etc.). Thedetermining includes utilizing a sliding scale of compliance (e.g.,conditional chaining) based on one or more of a user profile, exchangeitem information, an exchange item issuer, limited exchange item use,and timing of use. For example, the rule processing 942 obtainsinformation with regards to conditions and EI rules from the exchangeitem database 934 and interprets conditions data in accordance with theEI rules to determine the compliance. For example, the rule processing942 indicates that a weather rule is compliant when a temperaturecondition indicates a temperature value that is greater than atemperature threshold value associated with the weather rule.

The rule processing 942 may verify the compliance with the EI rule byobtaining issuer rule information 986 from the EI issuing server 920associated with the EI and by further verifying compliance by exchangingrule verification 990 with the EI trusted module 922. The verifying ofcompliance further includes verifying a security scheme (e.g., contractblockchain or the EI rules) and by checking that the EI rule comparesfavorably to the issuer rule information 986 from the EI issuing server920.

The rule processing 942 may update the applicable set of rules based onone or more of a rule changing, a rule expiring, and a new rule beingadded to the set. For example, the rule processing 942 updates theexchange item database 934 and sends owner rule info 988 to the EI buyercomputing device 926 to indicate an EI rule change associated with aparticular EI when current conditions and a previous rule indicatechanging the rule when the conditions are compliant.

The rule processing 942 may further determine a specific use as the oneor more rules of the applicable rule set (e.g., for a specific product,a specific store, etc.). For example, the rule processing 942 identifiesraising a discount level for the exchange item in accordance with the EIrule as the specific use in accordance with the EI rule and favorableconditions to alter the discount level. Alternatively, or in additionto, the rule processing 942 determines a specific time frame as the oneor more rules of the applicable rule set (e.g., for a set period oftime, a day, etc.). For example, the rule processing 942 identifies atwo-hour time window for the raised discount level for the exchange itemin accordance with the one or more rules.

When the corresponding condition of the exchange item is compliant withthe one or more rules, the rule processing 942 establishes a securecommunication with a computing device affiliated with a current owner(e.g., of the exchange item and/or of the contract blockchain) to takecontrol of the exchange item (e.g., to update an exchange item record ofthe exchange item). Having control includes holding a private keyassociated with modifying a blockchain associated with the exchangeitem. For example, the rule processing 942 exchanges a secure owner ruleinformation 988 with the EI buyer computing device 926 associated withan exchange item serial number 005, where the rule processing 942, inaccordance with a security rule, is allowed to modify the contractblockchain with regards to the EI rules.

While having control over the exchange item, the rule processing 942securely modifies the quantifiable value of the exchange item based onthe one or more rules to produce a modified exchange item. For example,the rule processing 942 adds another contract block to the contractblockchain, where the additional contract block includes a modifiedexchange item as modified exchange item info serial number 005. Themodifying of the quantifiable value includes increasing the quantifiablevalue for the specific use when the specific use is utilized as the oneor more rules of the applicable rule set and securely modifying thequantifiable value of the exchange item in accordance with theblockchain protocol.

Having modified the quantifiable value of the modified exchange item,the rule processing 942 sends a notification message (e.g., owner ruleinformation 988) to the computing device (e.g., the EI buyer computingdevice 926) regarding the increased quantifiable value and the specificuse. Having received the notification message, the EI buyer computingdevice 926 stores the (modified) exchange item in accordance with theblockchain protocol (e.g., stores the contract blockchain including thenew contract block in the digital wallet 944).

The modifying of the quantifiable value may further include increasingthe quantifiable value for use during the specific time frame when thespecific time frame is utilized as the one or more rules of theapplicable rule set (e.g., an increase discount level for the next twohours). Having modified the quantifiable value, the rule processing 942sends another notification message to the computing device regarding theincreased quantifiable value and the specific time frame.

While having control over the exchange item, the rule processing 942further prevents the computing device or another computing device fromaccessing the exchange item. For example, the rule processing 942 issuesowner rule information 988 to the EI buyer computing device 926indicating that the exchange item is not to be utilized while beingmodified. Alternatively, or in addition to, the rule processing 942updates the exchange item database 934 indicating that the exchange itemis not to be accessed while being modified. When completing themodification, the rule processing 942 releases, via the securecommunication, control of the modified exchange item to the computingdevice affiliated with the current owner. For example, the ruleprocessing 942 issues yet another owner rule information 988 to the EIbuyer computing device 926 indicating that the exchange item has beenupdated and released.

With the exchange item updated, and when the specific time frame expires(e.g., when utilized) and the modified exchange item is unused (e.g.,the EI buyer computing device 926 has not used the modified exchangeitem at all), the rule processing 942 facilitates reverting of theexchange item. The reverting of the exchange item includes one or moreof establishing another secure communication with the computing deviceaffiliated with exchange item to take control of the modified exchangeitem and while having control over the modified exchange item,decreasing the increased quantifiable value to the quantifiable value toproduce a reverted exchange item, preventing the computing device oranother computing device from accessing the exchange item, releasing,via the other secure communication, control of the reverted exchangeitem to the computing device affiliated with the current owner, andsending another notification message to the computing device regardingthe reverted exchange item.

Alternatively, when the specific time frame expires, and the modifiedexchange item was used but did not exhaust the quantifiable value, therule processing 942 facilitates producing a further modified EI. Thefacilitating to produce the further modified EI includes one or more ofidentifying another rule of the applicable set of rules to furthermodify the modified exchange item, establishing another securecommunication with the computing device affiliated to take control ofthe modified exchange item, and while having control over the modifiedexchange item, the rule processing 942 increases a remainingquantifiable value to produce a further modified exchange item, preventsthe computing device or another computing device from accessing to themodified exchange item, releases, via the other secure communication,control of the further modified exchange item to the computing deviceaffiliated with the current owner, and sends another notificationmessage to the computing device regarding the further modified exchangeitem.

With the modified exchange item, the EI buyer computing device 926 mayutilize the modified exchange item in conjunction with a purchasetransaction from a merchant. For example, the EI buyer computing device926 sends a use request to another server (e.g., a merchant server)regarding the modified exchange item (e.g., to utilize the modified EIfor the purchase transaction). Having received the use request, theother server sends a use notification to the marketplace server 18.Having received the use notification, the rule processing 942 of themarket place over 18 establishes a second secure communication with thecomputing device affiliated with the current owner to take control ofthe modified exchange item (e.g., exchanges owner rule information 988with the EI buyer computing device 926).

While having control over the exchange item, the marketplace server 18securely adjusts the quantifiable value of the exchange item based onthe use notification to produce an adjusted exchange item (e.g.,decrements a remaining balance by an amount of the purchase transactionand updates one or more of a transaction blockchain and the contractblockchain) and prevents the computing device, the other server, orother computing devices from accessing the exchange item. Once modified,the marketplace server 18 releases, via the second secure communication,control of the adjusted exchange item to the computing device affiliatedwith the current owner.

FIG. 8H is a diagram of an exchange item (EI) database 934 that includesa variety of fields. The variety of fields includes an EI serial number,and issuer, and owner, EI information, conditions, EI rules, offer forsale, use options, blockchain control, and blockchain location when ablockchain approach is utilized as a security mechanism for entitiestrading in the EI to verify attributes associated with the EI. Forexample, a transaction blockchain is associated with transactions frombirth of the EI to complete utilization/retirement of the EI and acontract blockchain associated with EI rule changes as time progresses.A structure of the transaction blockchain and the contract blockchain isdiscussed in greater detail with reference to FIG. 8J.

To ensure favorable security, a controlling entity desiring to modifythe blockchain must be associated with control of the blockchain asindicated by the blockchain control field of the exchange item database934. The controlling entity may change from one entity to another duringthe EI lifecycle and may further be constrained as indicated by the EIrules. For example, a particular blockchain may be controlled by the EIissuer in the beginning and later controlled by the marketplace serverin accordance with the EI rules established by the EI issuer. As anotherexample, the blockchain may be controlled by the merchant server toupdate rules and conditions to support a particular promotion as allowedby the original and current EI rules.

A most recent revision of a particular blockchain may be temporarilystored in one or more entities of the exchange item marketplace asindicated by the blockchain location field. As such, the controllingentity may utilize the exchange item database 934 to identify the entitywhere the blockchain is temporarily stored to gain access to theblockchain for modification in accordance with the rules and conditions.

FIG. 8J is another schematic block diagram of a transactions blockchainthat includes a series of transaction blocks. Each transaction blockincludes a security bridge from a last block to this block (e.g., hashover previous block and a previous nonce, and a hash over a currentblock and a current nonce), transaction information, a signature by acurrent seller over the transaction info, and a contract blockchain. Thetransaction information includes a next purchaser public key (e.g., apublic key of a public/private key pair of the next purchaser associatedwith a next transaction), payment information, and EI information. Thepayment information includes payment information (e.g., payment amount,payment source, etc.) from the next purchaser to the current sellerassociated with the current block. The signature is created by thecurrent seller signing the transaction information utilizing the privatekey of a public/private key pair of the current seller.

The contract blockchain includes one or more contract blocksrepresenting changes to rules and/or conditions of the EI of the EIinformation. For example, the contract blockchain includes a completecontract blockchain for substantially all of the rules and/or conditionschanges. As another example, the contract blockchain includes at leastone contract block associated with the transaction block. Alternatively,or in addition to, the contract blockchain is maintained separately andis not included within the transaction block. Further alternatively, asingle combined transaction and contract blockchain is maintained as oneentity.

Each contract block includes a security bridge from a last block to thisblock, a contract package (from a last contract block to this contractblock), and a signature by a current rules owner over the contractpackage. Each contract package includes at least one next owner publickey (e.g., associated with an exchange item marketplace entity expectedto be a next owner of the contract blockchain), and contractinformation. The contract information includes one or more of EI rules,conditions, use options, EI information, agreements, merchantidentifiers, issuer identifier, EI serial number, owner identifier, anoffer for sale indicator, etc. The signature over the contract packagescreated by a current owner of the contract blockchain signing thecontract package utilizing a private key of a public/private key pairassociated with the current owner of the contract blockchain. The ormore blockchains may be verified from time to time utilizingindustry-standard mining approaches and are applicable to both proof ofwork, proof of stake, and other hybrid mining techniques.

FIG. 8K is a logic diagram of an embodiment of a method for modifying anexchange item in an exchange item marketplace network. In particular, amethod is presented for use in conjunction with one or more functionsand features described in conjunction with FIGS. 1-7E, 8A-J, and alsoFIG. 8K. The method includes step 1000 where a processing module of aserver (e.g., a marketplace server of a communication system) recordsconditions for a plurality of exchange items. For an exchange item ofthe plurality of exchange items, where the exchange item has aquantifiable value, a serial number, and a current owner, the methodcontinues at step 1002 where the processing module determines whether acorresponding condition of the exchange item is compliant with one ormore rules of an applicable set of rules. The determining may includedetermining a specific use as the one or more rules of the applicablerule set. The determining may further include determining a specifictime frame as the one or more rules of the applicable rule set. Thedetermining may yet further include utilizing a sliding scale ofcompliance based on one or more of a user profile, an exchange iteminformation, exchange item issuer, limited exchange item use, and timingof use. The determining may still further include updating theapplicable set of rules based on one or more of a rule changing, a ruleexpiring, and a new rule being added to the set. For example, updatingthe rules and utilizing the updated rules for a compliancedetermination.

When the corresponding condition of the exchange item is compliant withthe one or more rules, the method continues at step 1004 where theprocessing module establishes a secure communication with a computingdevice affiliated with the current owner to take control of the exchangeitem. For example, the processing module accesses a contract blockchaincurrently possessed by the computing device.

While having control over the exchange item, the method continues atstep 1006 where the processing module securely modifies the quantifiablevalue of the exchange item based on the one or more rules to produce amodified exchange item. The modifying may include modifying thequantifiable value by increasing the quantifiable value for the specificuse when the specific use is utilized as the one or more rules of theapplicable rule set and securely modifying the quantifiable value of theexchange item in accordance with a blockchain protocol (e.g., of thecontract blockchain). The modifying may further include sending anotification message to the computing device regarding the increasedquantifiable value and the specific use and storing, by the computingdevice, the exchange item in accordance with the blockchain protocol.The modifying of the quantifiable value may further include increasingthe quantifiable value for use during the specific time frame (e.g., anincreased discount for the next two hours) when the specific time frameis utilized as the one or more rules of the applicable rule set andsending a notification message to the computing device regarding theincreased quantifiable value and the specific time frame. While havingcontrol over the exchange item, the processing module prevents thecomputing device or another computing device from accessing the exchangeitem (e.g., marking the modified exchange item as not accessible).

The method continues at step 1008 where the processing module releases,via the secure communication, control of the modified exchange item tothe computing device affiliated with the current owner. For example, theprocessing module marks the modified exchange item as accessibleenabling use of the modified exchange item by the computing device(e.g., to make a purchase transaction). When the specific time frameexpires (e.g., two hours has elapsed), and the modified exchange itemwas used but did not exhaust the quantifiable value, the method branchesto step 1012. When the specific time frame expires and the modifiedexchange item is unused, the method continues to step 1010.

When the specific time frame expires and the modified exchange item isunused, the method continues at step 1010 where the processing modulefacilitates producing a reverted EI. The facilitating includesestablishing another secure communication with the computing deviceaffiliated to take control of the modified exchange item. While havingcontrol over the modified exchange item, the processing module decreasesthe increased quantifiable value to the quantifiable value to produce areverted exchange item, prevents the computing device or anothercomputing device from accessing the exchange item, releases, via theother secure communication, control of the reverted exchange item to thecomputing device affiliated with the current owner, and sends anothernotification message to the computing device regarding the revertedexchange item. The method branches to step 1014.

When the specific time frame expires, and the modified exchange item wasused but did not exhaust the quantifiable value, the method continues atstep 1012 where the processing module facilitates producing a furthermodified EI. The facilitating of producing the further modified EIincludes identifying another rule of the applicable set of rules tofurther modify the modified exchange item and establishing anothersecure communication with the computing device affiliated to takecontrol of the modified exchange item. While having control over themodified exchange item, the processing module increases a remainingquantifiable value to produce a further modified exchange item, preventsthe computing device or another computing device from accessing to themodified exchange item, releases, via the other secure communication,control of the further modified exchange item to the computing deviceaffiliated with the current owner, and sends another notificationmessage to the computing device regarding the further modified exchangeitem.

The method continues at 1014 where the computing device sends a userequest to another server regarding the modified exchange item (e.g., toutilize the modified exchange item for a purchase transaction). Themethod continues at step 1016 where the other server sends a usenotification to the other server (e.g., including information withregards to the purchase transaction). The method continues at step 1018where the processing module of the server establishes a second securecommunication with the computing device affiliated with the currentowner to take control of the modified exchange item.

While having control over the exchange item, the method continues atstep 1020 where the processing module of the server securely adjusts thequantifiable value of the exchange item based on the use notification toproduce an adjusted exchange item (e.g., decrements a remaining balanceby an amount of the purchase transaction). The adjusting may furtherinclude preventing the computing device, the other server, or othercomputing devices from accessing the exchange item during the adjusting.The method continues at step 1022 where the processing module of theserver, and via the second secure communication, releases control of theadjusted exchange item to the computing device affiliated with thecurrent owner.

The method described above in conjunction with the processing canalternatively be performed by other modules of the exchange itemmarketplace network or by other devices. In addition, at least onememory section (e.g., a computer readable memory, a non-transitorycomputer readable storage medium organized into a first memory section,a second memory section, a third memory section, a fourth memorysection, etc.) that stores operational instructions can, when executedby one or more processing modules of one or more computing devices(e.g., one or more servers) of the exchange item marketplace network,cause the one or more computing devices to perform any or all of themethod steps described above.

FIG. 8L is a schematic block diagram of another embodiment of anexchange item marketplace network (e.g., a data communication system)that includes the initial owner computing device 928 FIG. 6, theexchange item (EI) issuing server 920 of FIG. 6, the EI trusted module922 of FIG. 6, the merchant server 924 of FIG. 6, marketplace server 18FIG. 6, the marketplace database 20 of FIG. 6, and the EI buyercomputing device 926 FIG. 6. Entities of the exchange item marketplacenetwork may be operably coupled to each other via the network 24 of FIG.6 or may be directly coupled. The initial owner computing device 928includes the digital wallet 946 of FIG. 6 and the EI buyer computingdevice 926 includes the digital wallet 944 of FIG. 6. The marketplaceserver 18 includes the set up processing 936, the sale processing 938,the use processing 940, and the rule processing 942 all of FIG. 6. Theexchange item marketplace network functions to transfer secure custodyof an exchange item between entities in accordance with a secure custodyprotocol. The secure custody protocol includes utilizing one or more ofa contract blockchain and a transaction blockchain as previouslydiscussed.

In an example of operation of the transferring the secure custody of theexchange item between entities, the marketplace server 18 (e.g., theserver) establishes an initial validity of the exchange item thatincludes data regarding a quantifiable value, a serial number, andissuance information, where the initial validity authenticates theexchange item and the data. The issuance information includes one ormore of issuer identity, and issuance date, and expiration time frame,EI rules, and use parameters. The establishing may include receiving aplurality of exchange items from the EI issuing server 920, where theplurality of exchange items includes the exchange item, and establishingthe initial validity of the exchange item with the EI issuing server920. For example, the set up processing 936 receives EI information 950and an EI rule set 952 from the EI issuing server 920, where the EIissuing server 920 issues trust information 954 (e.g., a first contractblock of the contract blockchain) to the EI trusted module 922 whilegenerating the EI information 950 and the EI rule set 952. Havingreceived the EI information 950 and the EI rule set 952, the set upprocessing 936 exchanges set up verification 956 with the EI trustedmodule 922 to validate the EI information 950 and the EI rule set 952.

Having established the initial validity of the exchange item, themarketplace server 18 executes a secure custody protocol to establishthat the initial owner computing device 928 (e.g., a first computingdevice) of the exchange item marketplace network (e.g., datacommunication system) has secure custody of the exchange item and tomaintain validity of the exchange item. The secure custody protocol mayfurther include one or more of a chain of custody mechanism (e.g., theblockchains), exchange item modification restrictions for computingdevices of the data communication system (e.g., the initial ownercomputing device 928, the EI buyer computing device 926, the merchantserver 924), and exchange item modification rights for servers of thedata communication system. For example, the sale processing 938exchanges set up information 958 with the initial owner computing device928 (e.g., a request to purchase the exchange item, confirmation ofsale, the EI info 950, one or more of the transaction blockchain and thecontract blockchain).

Having executed the secure custody protocol, in response to an exchangeitem transfer and in accordance with the secure custody protocol, themarketplace server 18 facilitates transfer of the secure custody of theexchange item from the first computing device (e.g., the initial ownercomputing device 928) to the server or to a second computing device(e.g., the EI buyer computing device 926) of the data communicationsystem. Such transfer supports one or more of a sale of the exchangeitem, use of the exchange item for a purchase transaction with amerchant associated with the merchant server 924, and modification ofthe exchange item in accordance with the EI rule set 952.

The transferring the secure custody of the exchange item from theinitial owner computing device 928 to the EI buyer computing device 926includes creating, by the sale processing 938, an offer for sale digitalfile for the exchange item in response to an offer for sale request fromthe initial owner computing device 928 and writing the offer for saledigital file for the exchange item to the marketplace database 20 (e.g.,a virtual marketplace database) that includes a user interface forcomputing devices of the data communication system to view offer forsale digital files for a plurality of exchange items. The transferringfurther includes the sale processing 938 receiving purchase information970 that includes a request to purchase the exchange item from the EIbuyer computing device 926 and upon successful execution of thepurchase, transferring the secure custody of the exchange item to the EIbuyer computing device 926. For example, the sale processing 938exchanges sale verification 968 with the EI trusted module 922 to updatethe transaction blockchain to indicate that the EI buyer computingdevice 926 is purchasing the exchange item from the initial ownercomputing device 928.

The transferring the secure custody of the exchange item from the firstcomputing device to the second computing device may further include thesale processing 938 transferring, in response to another exchange itemtransfer and in accordance with the secure custody protocol, the securecustody of the exchange item from the second computing device to themarketplace server 18 or to a third computing device of the datacommunication system. The transferring the secure custody of theexchange item from the first computing device to the second computingdevice may still further include the initial owner computing device 928sending a request to use the exchange item to the use processing 940 ofthe marketplace server 18, where the request to use the exchange itemidentifies the second computing device. When the use is authorized(e.g., the use processing 940 verifies that such use is authorized inaccordance with the EI rule set 952), the use processing 940 transfersthe secure custody of the exchange item to the second computing devicefor the second computing device to execute the use, where the secondcomputing device changes the quantifiable value of the exchange item toproduce a use modified exchange item (e.g., modified EI info 1030), andthe use processing 940 transfers secure custody of the use modified EIinfo 1030 from the second computing device to the first computingdevice.

When transferring the secure custody of the exchange item from theinitial owner computing device 928 (e.g., the first computing device) tothe EI buyer computing device 926 (e.g., the second computing device),the rule processing 942 of the marketplace server 18 determines whethera change to the data of the exchange item occurred while the exchangeitem is in the secure custody of the second computer. For example, therule processing 942 indicates the change to the data when the useprocessing 940 receives merchant use information 980 from the merchantserver 924 in response to the EI buyer computer device 926 issuing buyeruse information 976 to the use processing 940 to facilitate the purchasetransaction with the merchant server 924.

When the change to the data of the exchange item occurred while theexchange item is in the secure custody of the second computer, the useprocessing 940 of the marketplace server 18 determines whether theexchange item is exhausted (e.g., a remaining balance of zero). When theexchange item is exhausted, the use processing 940 retires the exchangeitem (e.g., removes the exchange item from the marketplace database 20and/or issues retirement information to a current owner of exchangeitem.

When the exchange item is in the secure custody of the server, the ruleprocessing 942 of the marketplace server 18 may modify the data of theexchange item to produce a modified exchange item. The modifying of thedata of the exchange item includes identifying a set of rules regardingthe exchange item, where the set of rules includes one or more rules,where a rule of the set of rules includes an amount of data change andone or more conditions on when to apply the amount of change. Themodifying further includes the rule processing 942 determining that acondition involving the first computing device conforms to the one ormore conditions and when the condition involving the first computingdevice conforms to the one or more conditions, the rule processing 942modifies the data of the exchange item in accordance with the amount ofchange (e.g., updates the marketplace database 20). Having modified thedata of the exchange item, the rule processing 942 transfers securecustody of the modified exchange item to the initial owner computingdevice 928 device in accordance with the secure custody protocol.

FIG. 8M is a logic diagram of an embodiment of another method formodifying an exchange item in an exchange item marketplace network. Inparticular, a method is presented for use in conjunction with one ormore functions and features described in conjunction with FIGS. 1-7E,8A-L, and also FIG. 8M. The method includes step 1100 where a processingmodule of a server (e.g., a marketplace server of a communicationsystem) establishes an initial validity of an exchange item thatincludes data regarding a quantifiable value, a serial number, andissuance information, where the initial validity authenticates theexchange item and the data. The establishing may include receiving aplurality of exchange items from an issuing server, where the pluralityof exchange items includes the exchange item, and establishing theinitial validity of an exchange item with the issuing server.

The method continues at step 1102 where the processing module executes asecure custody protocol to establish that a first computing device ofthe data communication system has secure custody of the exchange itemand to maintain validity of the exchange item. For example, theprocessing module generates a secure transaction block of a transactionblockchain, where the secure transaction block indicates that the firstcomputing device has secure custody.

The method continues to step 1104 where the processing module transfers,in response to an exchange item transfer and in accordance with thesecure custody protocol, the secure custody of the exchange item fromthe first computing device to the server or to a second computing deviceof the data communication system (e.g., for a sale, a purchase, or amodification). The method branches to step 1112 when transferring to theserver. When transferring to the second computing device, thetransferring the secure custody of the exchange item from the firstcomputing device to the second computing device includes creating anoffer for sale digital file for the exchange item in response to anoffer for sale request from the first computing device the offer forsale digital file for the exchange item to a virtual marketplacedatabase that includes a user interface for computing devices of thedata communication system to view offer for sale digital files for aplurality of exchange items, receiving a request to purchase theexchange item from the second computing device, and upon successfulexecution of the purchase, transferring the secure custody of theexchange item to the second computing device.

The transferring the secure custody of the exchange item from the firstcomputing device to the second computing device may further includetransferring, in response to another exchange item transfer and inaccordance with the secure custody protocol, the secure custody of theexchange item from the second computing device to the server or to athird computing device of the data communication system. Thetransferring the secure custody of the exchange item from the firstcomputing device to the second computing device may still furtherinclude sending, by the first computing device, a request to use theexchange item to the server, where the request to use the exchange itemidentifies the second computing device. When the use is authorized,processing module transfers the secure custody of the exchange item tothe second computing device for the second computing device to executethe use, where the second computing device changes the quantifiablevalue of the exchange item to produce a use modified exchange item, andtransfers secure custody of the use modified exchange item from thesecond computing device to the first computing device.

When transferring the secure custody of the exchange item from the firstcomputing device to the second computing device, the method continues atstep 1106 where the processing module determines whether a change to thedata of the exchange item occurred while the exchange item is in thesecure custody of the second computing device (e.g., a lowering of aremaining balance based on usage of the exchange item). When the changeto the data of the exchange item occurred while the exchange item is inthe secure custody of the second computing device, the method continuesat step 1108 where the processing module determines whether the exchangeitem is exhausted (e.g., remaining balance has reached zero). When theexchange item is exhausted, the method continues at step 1110 where theprocessing module retires the exchange item.

When the exchange item is in the secure custody of the server, themethod continues at step 1112 or the processing module modifies the dataof the exchange item to produce a modified exchange item. The modifyingthe data of the exchange item includes identifying a set of rulesregarding the exchange item, where the set of rules includes one or morerules, where a rule of the set of rules includes an amount of datachange and one or more conditions on when to apply the amount of change,determining that a condition involving the first computing deviceconforms to the one or more conditions, and when the condition involvingthe first computing device conforms to the one or more conditions,modifying the data of the exchange item in accordance with the amount ofchange. The method continues at step 1114 where the processing moduletransfers secure custody of the modified exchange item to the firstcomputing device in accordance with the secure custody protocol.

The method described above in conjunction with the processing canalternatively be performed by other modules of the exchange itemmarketplace network or by other devices. In addition, at least onememory section (e.g., a computer readable memory, a non-transitorycomputer readable storage medium organized into a first memory section,a second memory section, a third memory section, a fourth memorysection, a fifth memory section etc.) that stores operationalinstructions can, when executed by one or more processing modules of oneor more computing devices (e.g., one or more servers) of the exchangeitem marketplace network, cause the one or more computing devices toperform any or all of the method steps described above.

FIG. 8N is a schematic block diagram of another embodiment of anexchange item marketplace network (e.g., a data communication system, anetwork-based virtual exchange item marketplace) that includes thenetwork 24 of FIG. 6, the merchant server 924 of FIG. 6, an enterprisestorage 1122, an enterprise server 1124, a trusted issuing server 1134,and a plurality of computing devices 1-C. The trusted issuing server1134 may be implemented utilizing one or more of a secure server, theexchange item (EI) issuing server 920 of FIG. 6, and the EI trustedmodule 922 of FIG. 6. The enterprise storage 1122 may be implementedutilizing a plurality of storage servers at a local or distributed levelfor storing large amounts of data. For example, the enterprise storage1122 may be implemented utilizing the marketplace database 20 of FIG. 6.The enterprise server 1124 may be implemented utilizing one or moreservers for processing large amounts of data. For example, theenterprise server 1124 may be implemented utilizing the marketplaceserver 18 of FIG. 6. The plurality of computing devices may include oneor more of the initial owner computing device 928 of FIG. 6, the EIbuyer computing device 926 of FIG. 6, and any other computer that ispart of the data communication system.

The enterprise storage 1122 includes one or more of the agreementdatabase 930 of FIG. 6, the user database 932 of FIG. 6, the exchangeitem database 934 of FIG. 6, and a rules database 1120. The enterpriseserver 1124 includes a network interface, a memory, and a processingmodule operably coupled to the network interface into the memory. Thenetwork interface may be implemented utilizing the network interfacemodule(s) 78 of FIG. 3. The memory may be implemented utilizing one ormore of the main memory 66 of FIG. 3, the memory interface module(s) 80of FIG. 3, the flash memory 92 of FIG. 3, the HD memory 94 of FIG. 3,the SS memory 96 of FIG. 3, and the cloud memory 98 of FIG. 3. Theprocessing module may be implemented utilizing the processing module 62of FIG. 3 and may be utilized to implement one or more of a set upmodule 1126, a sale module 1128, a use module 1130, and a ruleapplication module 1132.

The set up module 1126 functions to initially validate exchange itemsand create records in the exchange item database 934 for validatedexchange items, where each of the exchange items includes data regardinga quantifiable value, a serial number, and issuance information. Thesale module 1128 functions to securely transfer a selected exchange itemfrom the first computing device to the second computing device. The usemodule 1130 functions to securely apply the selected exchange item to aclosed loop digital transaction in accordance with an agreement of theagreements database 930. The rule application module 1132 functions tosecurely modify the data of the selected exchange item in accordancewith an applicable set of rules from the rules database 1120. Examplesof operation of the enterprise server 1124 are discussed in greaterdetail below.

The enterprise storage 1122 further functions to store the user database932, where the user database 932 includes one or more of a useridentifier field (e.g., identified person and associated computingdevices), an exchange item buying information field; (e.g., which EIsthe user buys), and exchange item use information field (e.g., how much,how often, and what types of EIs the user uses), and an exchange itemselling information field.

To facilitate offering exchange items for sale, the processing module ofthe enterprise server 1124 accesses a record in the user database 932 ofa user associated with a computing device, accesses one or more of theexchange item database, the agreements database, and the rules databaseto identify one or more exchange items of interest to the user, andsends, via the network interface, a message to the computing deviceregarding the one or more exchange items of interest.

When acquiring an exchange item, the computing device of the pluralityof computing devices stores a user exchange item database (e.g., aportion of the exchange item database 934 that is pertinent to the userand computing device) that includes one or more of an exchange itemidentifier field, an issuer identifier field, an exchange iteminformation field, a use options field, a control field, a locationfield, a status field, and a transaction field. The exchange itemdatabase 934 includes one or more records, where each record includesone or more of an exchange item identifier field, an issuer identifierfield, a current owner identifier field, an exchange item informationfield (e.g., value, type, issuance date, expiration date, useparameters), a conditions field (e.g., tracks conditions of an ownerregarding potential applicability of rules), a rules identifier field(e.g., identifies one or more applicable rule sets), an offer for salefield (e.g., an indication that current owner is offering the EI forsale, doesn't prohibit current owner from using EI), a use options field(e.g., identifies which merchants will accept the EI as a form ofpayment, this is determined based on content of the agreement database930), a control field (e.g., identifies the entity that currently hasthe right to use or modify the EI), a location field (e.g., identifiesthe entity that currently has physical possession of the EI, which maybe different than the entity that has control, for example, the servermay have physical possession and a computing device may have control), astatus field (e.g., identify the status of the EI such as active,inactive, valid, questionable validity, exhausted, expired, etc.), and atransaction field (e.g., a record of the transaction history of the EI,built into blockchain). Each field may include sub-fields to accommodatevarious pieces of information being recorded.

The agreements database includes one or more of an issuer identifierfield, an exchange item type field (e.g., identifies the types of EIthat are part of the agreement), a recipient entity identifier field(e.g., identifies the entities that will accept the EI as a form ofpayment), an agreement identifier field (e.g., agreement between issuerand recipient entity on use of EI), and a rules identifier field (e.g.,if rules exist for EI, do they apply for use with the recipient, mayvary from recipient to recipient). The rules database includes one ormore of an issuer identifier field, an exchange item type field (e.g.,per issuer), a rule set field (e.g., includes rules for a set of rules:discount, conditions to be met, etc.), and a rules applicability field(e.g., for an EI type, does the rule set apply or not).

When adding a new exchange item to the data communication system, theset up module 1126 establishes establish, via the network interface andthe network 24, a secure communication link with the trusted issuingserver 1134, where the issuing server 1134 performs one or more ofcreating the EI to put directly into the exchange item database,providing on-the-fly creation at request of a user or merchant,providing the EI as a location based promotion, and providing the EI asa user based promotion, etc. Having established the link, the set upmodule 1126 receives, via the network interface and the network 24, thedata of the exchange item from the trusted issuing server 1134 inaccordance with a secure custody protocol (e.g., utilizing a contractblockchain). Having received the data, the set up module 1126establishes the enterprise server 1124 as having secure custody of theexchange item (e.g., as a current owner as noted within the contractblockchain). Having established the secure custody, the set up module1126 creates a record in the exchange item database 934 for the exchangeitem.

When the exchange item is to be sold to a computing device, the salemodule 1128 receives, via the network interface and the network 24, arequest to sell a particular exchange item for a first computing device(e.g., computing device 1). Having received the request, the sale module1128 verifies that the first computing device has secure custody of theparticular exchange item in accordance with the secure custody protocol(e.g., verifies a signature of the computing device 1). When the firstcomputing device has secure custody of the particular exchange item, thesale module 1128 verifies the data of the exchange item (e.g., verifieswith the trusted issuing server 1134, verifies with the exchange itemdatabase 934, verifies a signature over the data). When the data of theexchange item is verified, the sale module 1128 adds an offer for saledigital record for the particular exchange item in the network-basedvirtual exchange item marketplace (e.g., indicates for sale in theexchange item database 934).

When the exchange item is to be sold from the first computing device tothe second computing device, the sale module 1128 receives, via thenetwork interface and the network 24, a request to purchase a particularexchange item from the second computing device (e.g., computing device2) and authenticates the second computing device. When the secondcomputing device is authenticated, the sale module 1128 transfers securecustody of the particular exchange item from the first computing deviceto the second computing device in accordance with the secure custodyprotocol (e.g., facilitates modification of the contract blockchain toindicate that the computing device 2 is the new owner), and removes theoffer for sale digital record for the particular exchange item from thenetwork-based virtual exchange item marketplace (e.g., updates theexchange item database 934).

When a computing device (e.g., computing device 2) utilizes an exchangeitem in a purchase transaction (e.g., a closed loop digitaltransaction), the use module 1130 receives, via the network interfaceand the network 24 from a computing device, a request to use theexchange item in a particular closed loop digital transaction with arecipient entity server (e.g., the merchant server 924). Having receivedthe request, the use module 1130 accesses the agreements database 930 todetermine whether an agreement exists between an issuing server (e.g.,the trusted issuing server 1134) of the particular exchange item and therecipient entity server. When the agreement exists, the use module 1130determines whether the particular closed loop digital transaction is inaccordance with the agreement (e.g., user is allowed, the particulartype of transaction is allowed, rules and conditions apply, etc.). Whenthe particular closed loop digital transaction is in accordance with theagreement, the use module 1130 authorizes the particular closed looptransaction. When the agreement does not exist or the particular closedloop digital transaction is not in accordance with the agreement, usemodule 1130 denies the particular closed loop transaction.

From time to time, the rule application module 1132 considers modifyingthe data of the exchange item (e.g., based on one or more ofinterpreting a schedule, receiving a request, detecting a change in acondition). When considering the modifying of the data, the ruleapplication module 1132 obtains condition information of a computingdevice having secure custody of a particular exchange item (e.g.,condition from user profile and history provides the conditioninformation, physical location, environmental conditions, etc.). Theobtaining includes one or more of identifying a condition source,interpreting condition data from the identified condition source,receiving the condition information, performing a lookup, and generatingthe condition information based on condition data.

Having obtained the condition information, the rule application module1132 accesses rules of the applicable set of rules associated with theparticular exchange item from the rules database 1120. Having accessedthe rules, the rule application module 1132 compares the conditioninformation with the rules of the applicable set of rules. When thecondition information compares favorably with the rules of theapplicable set of rules, the rule application module 1132 obtains securecustody of the particular exchange item from the computing device inaccordance with the secure custody protocol (e.g., physically takecustody by a data transfer or update the exchange item database 934 toindicate that the enterprise server 1124 has secure custody). Whilehaving secure custody, the rule application module 1132 modifies thedata of the particular exchange item in accordance with the rules of theapplication set of rules to produce a modified exchange item andtransfers secure custody of the modified exchange item to the computingdevice.

FIG. 8P is a logic diagram of an embodiment of another method forsecurely processing an exchange item in an exchange item marketplacenetwork. In particular, a method is presented for use in conjunctionwith one or more functions and features described in conjunction withFIGS. 1-7E, 8A-N, and also FIG. 8P. The method includes step 1140 wherea processing module (e.g., of an enterprise server of a datacommunication system) stores an exchange item database, an agreementsdatabase, and a rules database in an enterprise storage. The storing mayfurther include storing a user database in the enterprise storage andaccessing a record in the user database of a user associated with acomputing device of a plurality of computing devices. The storing mayyet further include accessing a record in the user database of a userassociated with a computing device, accessing one or more of theexchange item database, the agreements database, and the rules databaseto identify one or more exchange items of interest to the user, andsending a message to the computing device regarding the one or moreexchange items of interest. The storing may still further includestoring, by the computing device of the plurality of computing devices,a user exchange item database (e.g., a portion of the user database).

The method continues at step 1142 where the processing module initiallyvalidates exchange items and creates records in the exchange itemdatabase for validated exchange items, where each of the exchange itemsincludes data regarding a quantifiable value, a serial number, andissuance information. The initially validating the exchange items andcreating records in the exchange further includes establishing a securecommunication link with a trusted issuing server, receiving the data ofan exchange item from the issuing server in accordance with a securecustody protocol, establishing the enterprise server as having securecustody of the exchange item, and creating a record in the exchange itemdatabase for the exchange item.

The method continues to step 1144 where the processing module securelytransfers a selected exchange item from a first computing device to asecond computing device in accordance with an offer for sale of theselected exchange item. The secure transferring of the selected exchangeitem from the first computing device to the second computing device inaccordance with the offer for sale of the selected exchange item furtherincludes a variety of approaches. In a first approach, the processingmodule receives a request to sell the selected exchange item from thefirst computing device, and verifies that the first computing device hassecure custody of the particular exchange item in accordance with asecure custody protocol. When the first computing device has securecustody of the particular exchange item, the processing module verifiesthe data of the exchange item. When the data of the exchange item isverified, the processing module adds an offer for sale digital recordfor the particular exchange item in a network-based virtual exchangeitem marketplace (e.g., an exchange item database).

In a second approach to the securely transferring the selected exchangeitem from the first computing device to the second computing device inaccordance with the offer for sale of the selected exchange item, theprocessing module receives a request to purchase a particular exchangeitem from the second computing device, and authenticates the secondcomputing device. When the second computing device is authenticated, theprocessing module transfers secure custody of the particular exchangeitem from a first computing device to the second computing device inaccordance with a secure custody protocol and removes an offer for saledigital record for the particular exchange item from the network-basedvirtual exchange item marketplace (e.g., from the exchange itemdatabase).

The method continues at step 1146 where the processing module securelyapplies the selected exchange item to a closed loop digital transactionbetween two computing entities (e.g., computing device or server) inaccordance with an agreement of the agreements database. The securelyapplying the selected exchange item to the closed loop digitaltransaction further includes receiving, from a computing device, arequest to use an exchange item in a particular closed loop digitaltransaction with a recipient entity server, and accessing the agreementsdatabase to determine whether an agreement exists between an issuingserver of the particular exchange item and the recipient entity server.When the agreement exists, the processing module determines whether theparticular closed loop digital transaction is in accordance with theagreement. When the particular closed loop digital transaction is inaccordance with the agreement, the processing module authorizes theparticular closed loop transaction. When the agreement does not exist orthe particular closed loop digital transaction is not in accordance withthe agreement, the processing module denies the particular closed looptransaction.

The method continues at step 1148 where the processing module securelymodifies the data of the selected exchange item in accordance with anapplicable set of rules from the rules database. The securely modifyingof the data of the selected exchange item further includes obtainingcondition information of a computing device having secure custody of aparticular exchange item, accessing rules of the applicable set of rulesassociated with the particular exchange item from the rules database,and comparing the condition information with the rules of the applicableset of rules. When the condition information compares favorably with therules of the applicable set of rules, the processing module obtainssecure custody of the particular exchange item from the computing devicein accordance with secure custody protocol. While having secure custody,the processing module modifies the data of the particular exchange itemin accordance with the rules of the application set of rules to producea modified exchange item and transfers secure custody of the modifiedexchange item to the computing device.

The method described above in conjunction with the processing canalternatively be performed by other modules of the exchange itemmarketplace network or by other devices. In addition, at least onememory section (e.g., a computer readable memory, a non-transitorycomputer readable storage medium organized into a first memory section,a second memory section, a third memory section, a fourth memorysection, a fifth memory section etc.) that stores operationalinstructions can, when executed by one or more processing modules of oneor more computing devices (e.g., one or more servers) of the exchangeitem marketplace network, cause the one or more computing devices toperform any or all of the method steps described above.

FIGS. 9A-B are schematic block diagrams of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the point-of-sale (POS)equipment 32 of FIG. 1, the merchant server 924 of FIG. 6, themarketplace server 18 of FIG. 6, and the marketplace database 20 of FIG.6. The EI buyer computing device 926 includes the digital wallet 944 ofFIG. 6. Hereafter, the EI buyer computing device 926 may beinterchangeably referred to as a user computing device. The marketplaceserver 18 includes the set up processing 936 of FIG. 6 and the useprocessing 940 of FIG. 6. The marketplace server 18 further includes anetwork interface (e.g., the network interface module 78 of FIG. 3), amemory (e.g., the main memory 66 of FIG. 3), and a processing module(e.g., the processing module 62 of FIG. 3). Hereafter the exchange itemmarketplace network may be interchangeable referred to as a datacommunication system. The data communication system functions toauthorize exchange item redemption within the exchange item marketplacenetwork.

FIG. 9A illustrates an example of the authorizing of the exchange itemredemption where the set up processing 936 receives EI information 950from the EI issuing server 920 to establish an exchange item within themarketplace. The receiving may be in response to a new exchange itemestablishment request and/or in response to an initial owner computingdevice facilitating sale of the exchange item via the marketplace. Thereceiving may further include the EI issuing server 920 and the EItrusted module 922 exchanging trust information 954 and the EI trustedmodule 922 exchanging set up verification 956 with the set up processing936 to complete verification of the exchange item.

The EI information 950 includes an exchange item serial number asoriginally issued by at least one of the brand server 26 of FIG. 1, theprocessor server 28 of FIG. 1, and the distributor server 30 of FIG. 1.The exchange item serial number includes a static portion and a dynamicportion, where all bits of the serial number are static portion bitswhen there are no dynamic portion bits when each bit of the serialnumber may be either a static portion bits or a dynamic portion bit. Astatic portion bit is intended not to change over a time frame ofutilization of the exchange item where a dynamic portion bit may changefrom time to time.

Having received the EI info 950, the set up processing 936 of themarketplace server 18 establishes one or more security parameters (e.g.,hereafter interchangeably referred to as EI security parameters 1290 orsecurity parameters) for the exchange item, where the exchange itemincludes an exchange item data file having a quantifiable value, aserial number (e.g., a static identifier), and issuance information(e.g., issuer identity, an issuance date, an expiration time frame, EIrules, use parameters). The one or more security parameters includes oneor more of a secret key, a time interval truncation function (i.e.,interchangeably referred to as a time interval increment), a generatoralgorithm identifier (ID) to identify one of a plurality of generatoralgorithms, and an arithmetic algorithm identifier (i.e.,interchangeably referred to as a combiner algorithm ID) to identify oneor more of a plurality of arithmetic algorithms (e.g., logical and/ormathematical functions). The establishing may be based on one or more ofa predetermination, system registry information, a security requirement,and a request. The generating of the EI security parameters 1290includes one or more of generating the secret key (e.g., anonymously ina random fashion as a shared key, subsequently in conjunction with theEI buyer computing device 926 utilizing a Diffie Hellman approach),selecting the time interval truncation function (e.g., truncate time towithin 1 minute), selecting the generator algorithm ID, and selectingthe combiner algorithm ID.

The establishing may further include the set up processing 936 of themarketplace server 18 receiving the exchange item data file (i.e., EIinformation 950) from the issuing server 920 of the data communicationsystem. The receiving may include the EI issuing server 920 utilizing afirst level of secure communication regarding the exchange item (e.g.,secure link, trusted certificates, first level encryption using apublic-private key pair after exchanging public keys). Alternatively,the receiving may include the set up processing 936 receiving the EIinformation 950 from an initial owner computing device (e.g., theinitial owner computing device offers the exchange item for sale via theexchange item marketplace).

Having generated the EI security parameters 1290, the set up processing936 stores the EI information 950 and the EI security parameters 1290 inthe marketplace database 20. Having performed the storing, when theexchange item is purchased by the EI buyer computing device 926, themarketplace server 18 securely provides the one or more securityparameters to the user computing device of the data communicationsystem. For example, the set up processing 936 sends the EI information950 and the EI security parameters 1290 to the EI buyer computing device926 for storage in the digital wallet 944 for a subsequent EI redemptionoperation. For instance, the set up processing 936 identifies the EIpurchase (e.g., a request from the EI buyer computing device 926 thatidentifies the static EI serial number), accesses the marketplacedatabase 20 based on the static EI serial number, retrieves theassociated EI information 950 and the EI security parameters 1290, andtransmits the EI information 950 and the EI security parameters 1290 tothe EI buyer computing device 926. Alternatively, the EI securityparameters 1290 include parameters to establish the secret key betweenthe set up processing 936 and the EI buyer computing device 926utilizing an industry approach (e.g., Diffie Hellman approach) such thatthe secret key is not directly communicated between the marketplaceserver 18 and the EI buyer computing device 926.

FIG. 9B further illustrates the example of the authorizing of theexchange item redemption where, when the EI buyer computing device 926desires to use the exchange item, the EI buyer computing device 926generates first dynamically secure exchange item data using a dynamicsecuring function having inputs that include a user time value, the oneor more security parameters, and one or more aspects of a copy of theexchange item data file in the possession of the user computing device(e.g., when the one or more aspects of the copy of the exchange itemdata file are held by the user computing device). The one or moreaspects of the exchange item data file comprises one more of an exchangeitem identifier (i.e., a static serial number), issuer identity, anissuance date, an expiration time frame, exchange item rules andexchange item use parameters.

The generating the first dynamically secure exchange item data includesexecuting, as part of the dynamic securing function, a generatorfunction of a plurality of generator algorithms on the user time valueand the one or more security parameters to produce an intermediateresultant (e.g., a number, a value, a code, etc.) and executing anarithmetic function of a plurality of arithmetic functions on theintermediate resultant and the one or more aspects of the copy of theexchange item data file to produce the first dynamically secure exchangeitem data. (e.g., any type of arithmetic and/or function—add, subtract,combine, append, aggregate, truncate, etc.). The generating of the firstdynamically secure exchange item data is discussed in greater detailwith reference to FIG. 9C.

The generating the first dynamically secure exchange item data mayalternatively include executing, as part of the dynamic securingfunction, a generator function of the plurality of generator algorithmson the user time value (e.g., a local time kept by the EI buyercomputing device 926 which may be synchronized with a common timesource) and the one or more security parameters to produce anintermediate resultant; executing a first arithmetic function of aplurality of arithmetic functions on the intermediate resultant and afirst aspect of the one or more aspects of the copy of the exchange itemdata file to produce first partial dynamically secure exchange itemdata; executing a second arithmetic function of the plurality ofarithmetic functions on the intermediate resultant and a second aspectof the one or more aspects of the copy of the exchange item data file toproduce second partial dynamically secure exchange item data; andexecuting a third arithmetic function of a plurality of arithmeticfunctions on the first and second partial dynamically secure exchangeitem data to produce the first dynamically secure exchange item data.

Having generated the first dynamically secure exchange item data, the EIbuyer computing device 926 sends the first dynamically secure exchangeitem data (e.g., dynamic EI information 1292) to the marketplace server18. The market place server 18 receives the first dynamically secureexchange item data from the user computing device. For example, when theEI buyer computing device 926 redeems the EI, the use processing 940receives merchant use information 980 (i.e., redemption transactioninformation, a merchant ID, a brand ID) and the dynamic EI information1292 (e.g., may be considered as a secure version of the EI inforeceived from the merchant server 924 via the POS equipment 32), wherethe EI buyer computing device 926 generates the dynamic EI information1292 based on the EI information 950 utilizing the EI securityparameters 1290, where the EI buyer computing device 926 generates buyeruse information 976 (e.g., redemption transaction information: purchaseamount, identifier of an item purchased, etc.), and where the merchantserver 924 issues the merchant use information 980 to the use processing940 based on the buyer use information 976 received from the EI buyercomputing device 926 via the POS equipment 32 (e.g., received via one ormore of magnetic stripe, security chip, QR code, barcode, 3-D barcode,manual entry, etc.).

Having received the first dynamically secure exchange item data, themarketplace server generates second dynamically secure exchange itemdata using the dynamic securing function having inputs that includes amarketplace time value (e.g., a local time kept by the marketplaceserver 18 which may be synchronized with the common time source), theone or more security parameters, and one or more aspects of the exchangeitem data file. The generating of the second dynamically secure exchangeitem data includes executing, as part of the dynamic securing function,the generator function of the plurality of generator algorithms on themarketplace time value and the one or more security parameters toproduce an intermediate resultant and executing the arithmetic functionof the plurality of arithmetic functions on the intermediate resultantand the one or more aspects of the exchange item data file to producethe second dynamically secure exchange item data.

As an example of the generating of the second dynamically secureexchange item data, the use processing 940 retrieves the EI information950 and the EI security parameters 1290 from the marketplace database 20and generates the second dynamically secure exchange item data based onthe retrieved EI information 950 and the EI security parameter 1290.Having generated the second dynamically secure exchange item data, themarketplace server compares the first dynamically secure exchange itemdata with the second dynamically secure exchange item data (e.g.,compares a received dynamic identifier to a locally generated dynamicidentifier of the exchange item). When the first dynamically secureexchange item data substantially matches the second dynamically secureexchange item data, the marketplace server authorizes the use of theexchange item by the user computing device. For example, the useprocessing 940 indicates that the use of the exchange item by the usercomputing device is authorized when the received dynamic IDsubstantially matches the locally generated dynamic ID.

The use processing 940 may further verify the redemption of the EI. Forexample, the use processing 940 retrieves the EI serial number from theEI information 950 (i.e., from the marketplace database 20), issues asupplemental use verification request 1294 (i.e., EI info, redemptiontransaction info) to the EI issuing server 920 that includes the EIinformation 950 and the information of the redemption (e.g., merchantuse information 980), where the EI issuing server 920 exchanges trustinformation 954 with the EI trusted module 922, and interprets areceived supplemental use verification response 1296 (i.e., EI info,redemption transaction info, approval status: yes/no) to produce afurther indication of authorization (i.e., indicate favorableauthorization when the response is favorable, such as when the EItrusted module 922 and/or the EI issuing server 920 verify that aremaining balance of the exchange item (e.g., based on the staticportion of the EI serial number) is sufficient to provide payment for apurchase associated with the redemption of the exchange item).

FIG. 9C is a schematic block diagram of an embodiment of the useprocessing of FIGS. 9A-B that includes a dynamic number generator 1298and a combiner 1300 to generate the locally generated dynamic EIinformation (i.e., the second dynamically secure exchange item data).Alternatively, or in addition to, the use processing 940 may beimplemented with a processing module of the EI buyer computing device926 to generate the dynamic EI information 1292 (i.e., the firstdynamically secure exchange item data). The use processing receives theEI information 950, a time 1302 (e.g., real-time), and the EI securityparameters 1290 to produce the dynamic EI information. The dynamicnumber generator 1298 and the combiner 1300 may be implemented utilizingone or more of the processing module 62 of FIG. 2, the computing core 52of FIG. 2, and the computing core 122 of FIG. 3.

In an example of operation of the generating of the dynamic EIinformation, the dynamic number generator 1298 applies one or moredeterministic functions (e.g., a hash based message authentication code(HMAC), a sponge function, a hashing function, a signature function, acyclic redundancy check (CRC), a checksum function, and a maskgenerating function (MGF) in accordance with the generator algorithm ID1308 (e.g., to select which deterministic function(s)) to the time 1302(e.g., real-time) in accordance with a time interval increment 1306(i.e., a time truncation interval of 30 seconds) utilizing a secret key1304 to produce a dynamic EI number portion 1314. For example, thedynamic number generator 1298 selects the HMAC based on the generatoralgorithm ID 1308, represents the time 1302 within a 30 second interval(i.e., xx:xx:00 or xx:xx:30) when the time interval increment 1306indicates 30 second intervals, and applies the HMAC function to therepresented time utilizing the secret key 1304 to produce an HMACfunction output as the dynamic EI number portion 1314.

With the dynamic EI number portion 1314 produced, the combiner combinesthe dynamic EI and a portion of the EI information 950 (i.e., a staticEI number portion 1312 of the EI information 950 in accordance with acombiner algorithm ID 1310 (i.e., arithmetic function) of the EIsecurity parameters 1290) to produce the dynamic EI information 1292. Assuch, the dynamic EI information produces a secure version of the EIserial number, where a portion of the secure version may include staticbits of the static EI number portion 1312 and dynamic bits of thedynamic EI number portion 1314 in accordance with the combiner algorithmID 1310. For instance, the combiner algorithm ID indicates which bitsare to be utilized for static bits and which bits are to be utilized fordynamic bits. Alternatively, or in addition to, the combiner 1300 mayutilize one or more other variables to produce the static and dynamicbits, where the one or more other variables includes one or more of thetime 1302, the secret key 1304, the time interval increment 1306, andthe generator algorithm ID 1308. The combiner 1300 may replace staticbits of the EI serial number with dynamic bits including replacement ofmost significant bits, middle bits, we significant bits, random bits, acombination, a personal identification (PIN) portion, etc. For example,the combiner 1300 utilizes most significant bits associated with 10 mostsignificant numbers of the EI serial number and least significant bitsof the dynamic EI number portion 1314 to generate 6 least significantnumbers of the EI serial number to produce a 16-digit secure version ofthe EI serial number as the first or second dynamically secure exchangeitem data.

FIG. 9D is a logic diagram of an embodiment of a method for authorizingexchange item redemption in an exchange item marketplace network. Inparticular, a method is presented for use in conjunction with one ormore functions and features described in conjunction with FIGS. 1-8P,9A-C, and also FIG. 9D. The method includes step 1320 where amarketplace server of a data communication system establishes one ormore security parameters for an exchange item, where the exchange itemincludes an exchange item data file having a quantifiable value, aserial number, and issuance information. The establishing may furtherinclude one or more of the marketplace server receiving the exchangeitem data file from an issuing server of the data communication system,the marketplace server receiving the exchange item data file from aninitial owner computing device, and the marketplace server generatingthe one or more security parameters for the exchange item in response todetection of fraudulent acquisition of the exchange item (i.e., by aninitial owner computing device with a stolen credit card), where themarketplace server initiates replacement of the exchange item (i.e., fora user computing device). Such replacement of the exchange item isdiscussed in greater detail with reference to FIGS. 10A-10C.

The method continues at step 1322 where the marketplace server securelyprovides the one or more security parameters to the user computingdevice of the data communication system. For example, the marketplaceserver provides the one or more security parameters to the usercomputing device when the user computing device purchases the exchangeitem.

When the user computing device desires to use the exchange item, themethod continues at step 1324 where the user computing device generatesfirst dynamically secure exchange item data using a dynamic securingfunction having inputs that include a user time value, the one or moresecurity parameters, and one or more aspects of a copy of the exchangeitem data file in the possession of the user computing device (e.g.,when the one or more aspects of the copy of the exchange item data fileare held by the user computing device). The generating the firstdynamically secure exchange item data includes executing, as part of thedynamic securing function, a generator function of a plurality ofgenerator algorithms on the user time value and the one or more securityparameters to produce an intermediate resultant. For example, the usercomputing device performs a hash based message authentication code onthe user time value in accordance with a time truncation interval (i.e.,1 minute intervals) utilizing a secret key of the one or more securityparameters to produce the intermediate resultant. The generating furtherincludes executing an arithmetic function of a plurality of arithmeticfunctions on the intermediate resultant and the one or more aspects ofthe copy of the exchange item data file to produce the first dynamicallysecure exchange item data. For example, the user computing devicereplaces a most significant 10 bits of a static exchange item identifierof the one or more aspects of the copy of the exchange item data filewith a most significant 10 bits of the intermediate resultant to producethe first dynamically secure exchange item data.

The generating the first dynamically secure exchange item data mayalternatively include executing, as part of the dynamic securingfunction, a generator function of the plurality of generator algorithmson the user time value and the one or more security parameters toproduce an intermediate resultant; executing a first arithmetic functionof the plurality of arithmetic functions on the intermediate resultantand a first aspect of the one or more aspects of the copy of theexchange item data file to produce first partial dynamically secureexchange item data; executing a second arithmetic function of theplurality of arithmetic functions on the intermediate resultant and asecond aspect of the one or more aspects of the copy of the exchangeitem data file to produce second partial dynamically secure exchangeitem data; and executing a third arithmetic function of the plurality ofarithmetic functions on the first and second partial dynamically secureexchange item data to produce the first dynamically secure exchange itemdata.

For instance, the user computing device performs the hash based messageauthentication code function on the user time value utilizing the secretkey of the one or more security parameters to produce the intermediateresultant; replaces a most significant 8 bits of the static exchangeitem serial number with a most significant 8 bits of the intermediateresultant to produce the first partially dynamically secure exchangeitem data; replaces a least significant 3 bits of a remaining balanceindicator of the one or more aspects of the copy of the exchange itemdata file to produce the second partial dynamically secure exchange itemdata and combines the first and second partial dynamically secureexchange item data to produce the first dynamically secure exchange itemdata, where the first dynamically secure exchange item data includes 8bits of the static exchange item serial number, 3 bits of the staticexchange item serial number, and 3 bits of the remaining balance.

The method continues at step 1326 where the marketplace server receivesthe first dynamically secure exchange item data from the user computingdevice. For example, the user computing device issues an exchange itemredemption request to the marketplace server, where the request includesthe first dynamically secure exchange item data.

The method continues at step 1328 where the marketplace server generatessecond dynamically secure exchange item data using the dynamic securingfunction having inputs that includes a marketplace time value, the oneor more security parameters, and the one or more aspects of the exchangeitem data file. The generating of the second dynamically secure exchangeitem data includes executing, as part of the dynamic securing function,a generator function of the plurality of generator algorithms onmarketplace time value and the one or more security parameters toproduce an intermediate resultant and executing an arithmetic functionof a plurality of arithmetic functions on the intermediate resultant andthe one or more aspects of the exchange item data file to produce thesecond dynamically secure exchange item data.

The method continues at step 1330 where the marketplace server comparesthe first dynamically secure exchange item data with the seconddynamically secure exchange item data. For example, the marketplaceserver determines whether the received dynamic identifier from the usercomputing device substantially matches the locally generated dynamicidentifier.

When the first dynamically secure exchange item data substantiallymatches the second dynamically secure exchange item data, the methodcontinues at step 1332 where the marketplace server authorizes the useof the exchange item by the user computing device. For example, themarketplace server indicates that the use of the exchange item by theuser computing device is authorized when the received dynamic identifierfrom the user computing device substantially matches the locallygenerated dynamic identifier.

The method described above in conjunction with the marketplace server,the issuing server, and the user computing device can alternatively beperformed by other modules of the exchange item marketplace network orby other devices. In addition, at least one memory section (e.g., acomputer readable memory, a non-transitory computer readable storagemedium organized into a first memory element, a second memory element, athird memory element, a fourth element section, a fifth memory elementetc.) that stores operational instructions can, when executed by one ormore processing modules of one or more computing devices (e.g., one ormore servers) of the exchange item marketplace network, cause the one ormore computing devices to perform any or all of the method stepsdescribed above.

FIGS. 10A-B are schematic block diagrams of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the point-of-sale (POS)equipment 32 of FIG. 1, the merchant server 924 of FIG. 6, themarketplace server 18 of FIG. 6, and the marketplace database 20 of FIG.6. The EI buyer computing device 926 includes the digital wallet 944 ofFIG. 6. Hereafter, the EI buyer computing device 926 may beinterchangeably referred to as a user computing device. The marketplaceserver 18 includes the set up processing 936 of FIG. 6 and the useprocessing 940 of FIG. 6. The marketplace server 18 further includes anetwork interface (e.g., the network interface module 78 of FIG. 3), amemory (e.g., the main memory 66 of FIG. 3), and a processing module(e.g., the processing module 62 of FIG. 3). Hereafter the exchange itemmarketplace network may be interchangeable referred to as a datacommunication system. The data communication system functions to abatefraudulent exchange item acquisition in the exchange item marketplacenetwork.

FIG. 10A illustrates an example of the abating of the fraudulentexchange item acquisition where, when the EI buyer computing device 926initiates redemption of an exchange item held by the EI buyer computingdevice (e.g., previously purchased from the marketplace, where aninitial owner computing device fraudulently obtained a staticallyidentified exchange item and utilized the marketplace to sell thefraudulently obtained exchange item to the EI buyer computing device) inaccordance with a dynamic exchange item identifier, the use processing940 receives an indication of the redemption initiation. For example,the use processing 940 receives merchant use information (info) 980 fromthe merchant server 924, where the merchant use information 980 includesan identifier of the exchange item, where the merchant server 924receives buyer use information 976 from the EI buyer computing device926 via the POS equipment 32, where the buyer use information 976includes the exchange item identifier, where the EI buyer computingdevice 926 issues the buyer use information 976 upon initiation of theredemption, and where the EI identifier includes one or more of a staticidentifier and a dynamic identifier of the exchange item.

Having received the merchant use information 980, the use processing 940determines that the exchange item was fraudulently obtained by theinitial owner computing device. The determining includes one or more ofreceiving an invalid EI indicator 1340, interpreting the EI info 950from the marketplace database 20, and forwarding the invalid EIindicator 1340 to the EI buyer computing device 926 (i.e., directly orvia the merchant server 924 and POS equipment 32).

FIG. 10B further illustrates the example of the abating of thefraudulent exchange item acquisition where, when the EI was fraudulentlyobtained by the initial owner computing device (e.g., or otherwiseassociated with fraudulent obtaining), the set up processing 936receives replacement EI information 1342 from the EI issuing server 920to reestablish the exchange item within the marketplace. The receivingmay be in response to a replacement exchange item request issued by theset up processing 936. The replacement EI information 1342 includes oneor more of a new static exchange item serial number generated by the EIissuing server 920 or another entity associated with the marketplace(e.g., the processor server 28 of FIG. 1).

Having received the replacement EI info 1342, the set up processing 936issues EI security parameters 1290 the replacement exchange item to theEI buyer computing device 926. The issuing includes generating the EIsecurity parameters 1290. The generating includes one or more ofgenerating a new secret key, generating a new time interval increment(i.e., truncation time interval), generator algorithm identifier, and/orcombiner algorithm identifier. The issuing further includes sending thereplacement EI info 1342 and the EI security parameters 1290 to the EIbuyer computing device 926 and storing the replacement EI info 1342 andthe EI security parameters 1290 in the marketplace database 20.Alternatively, the set up processing 936 sends one or more of thereplacement EI information 1342, the EI security parameters 1290, and avalid redemption indicator to the merchant server 924 to indicate thatthe redemption is valid.

When the EI buyer computing device 926 indicates to continue to redeemthe replacement exchange item, the use processing 940 receives dynamicEI information 1292 from the EI buyer computing device 926 (e.g., viathe POS equipment 32 and the merchant server 924), where the EI buyercomputing device 926 regenerates the dynamic EI information 1292 basedon the replacement exchange item information 1342 utilizing the updatedEI security parameters 1290. Having received the dynamic EI info 1292,the use processing 940 verifies the dynamic EI information 1292 toproduce authorization information. The verifying includes comparing thereceived dynamic EI information 1292 to locally generated dynamic EIinformation and indicating favorable authorization when the comparisonis favorable (i.e., a dynamic EI serial number matches). For example,the use processing 940 retrieves the replacement EI information 1342 andthe updated EI security parameters 1290 from the marketplace database20, and generates the locally generated dynamic EI information based onthe retrieved replacement EI information 1342 and the retrieved updatedEI security parameters 1290.

FIG. 10C is a logic diagram of an embodiment of a method for abatingfraudulent exchange item acquisition in an exchange item marketplacenetwork. The method includes step 1360 where, when a computing deviceinitiates redemption of an exchange item, a processing module (e.g., ofa marketplace server) receives an indication of the redemptioninitiation. For example, the processing module receives an exchange itemidentifier, where the exchange item identifier includes one or more of astatic identifier and a dynamic identifier of the exchange item.

The method continues at step 1362 where the processing module determinesthat the exchange item was fraudulently obtained by an initial owner.The determining includes one or more of receiving an invalid EIindicator (e.g., the initial owner utilized a stolen credit card toobtain the EI), interpreting EI information from a marketplace database,and forwarding the invalid EI indicator to the computing device.

The method continues at step 1364 where the processing module receivesreplacement EI information. The receiving may be in response to areplacement EI request to an issuing server (e.g., a brand server). Themethod continues at step 1366 where the processing module issues updatedEI security parameters for the replacement exchange item to thecomputing device. The issuing includes generating one or more of a newsecret key, a new time truncation interval, a new generator algorithm, anew arithmetic function; sending the replacement EI information andupdated EI security parameters to the computing device; and storing thereplacement EI information and the updated EI security parameters in themarketplace database.

The method continues at step 1368 where the processing module receivesdynamic EI information from the computing device. For example, when thecomputing device indicates to continue to redeem the replacement EI, theprocessing module receives dynamic EI information from the computingdevice, where the computing device generates the dynamic EI informationbased on the replacement EI information utilizing the updated EIsecurity parameters. The method continues at step 1370 where theprocessing module verifies the dynamic EI information to produceauthorization information. For example, the processing module comparesthe received dynamic EI information to locally generated dynamic EIinformation and indicates favorable authorization when the comparison isfavorable (i.e., a dynamic EI serial number matches), where thecomparing includes retrieving the replacement EI information and updatedEI security parameters from the marketplace database and generating thelocally generated dynamic EI information based on the retrievedreplacement EI information and updated EI security parameters.

The method described above in conjunction with the marketplace server,the issuing server, and the user computing device can alternatively beperformed by other modules of the exchange item marketplace network orby other devices. In addition, at least one memory section (e.g., acomputer readable memory, a non-transitory computer readable storagemedium organized into a first memory element, a second memory element, athird memory element, a fourth element section, a fifth memory elementetc.) that stores operational instructions can, when executed by one ormore processing modules of one or more computing devices (e.g., one ormore servers) of the exchange item marketplace network, cause the one ormore computing devices to perform any or all of the method stepsdescribed above.

FIG. 11A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the point-of-sale (POS)equipment 32 of FIG. 1, the merchant server 924 of FIG. 6, themarketplace server 18 of FIG. 6, the marketplace database 20 of FIG. 6,the initial owner computing device 928 of FIG. 6, and another computingdevice 1400. The other computing device 1400 may be implementedutilizing one or more of another EI buyer computing device 926. The EIbuyer computing device 926 includes the digital wallet 944 of FIG. 6.The marketplace server 18 includes the set up processing 936 of FIG. 6and the use processing 940 of FIG. 6. Hereafter, the EI buyer computingdevice 926 may be interchangeably referred to as a user computingdevice. Hereafter the exchange item marketplace network may beinterchangeable referred to as a data communication system. The datacommunication system functions to detect fraudulent exchange itemredemption in the exchange item marketplace network.

In an example of operation of the detecting of the fraudulent exchangeitem redemption, the set up processing 936 obtains EI information (info)950 for an EI to offered for sale in the marketplace, where the EI info950 includes a static EI identifier (ID). The static EI ID includes astatic EI serial number derived from an issuer and/or a processor. Theobtaining includes one or more of extracting the EI info from saleinformation 966 exchanged with the initial owner computing device 928facilitating the sale and receiving the EI info from the EI issuingserver 920 in response to a new EI establishment request.

When the EI is purchased by the EI buyer computing device 926, the setup processing 936 issues the EI info 950 and EI security parameters 1290to the EI buyer computing device 926. The issuing includes the set upprocessing 936 generating the EI security parameters for the EI inaccordance with a dynamic EI ID approach and sending the EI info 950 andthe EI security parameters 1290 to the EI buyer computing device 926.The set up processing 936 stores the EI info 950 and the EI securityparameters 1290 in the marketplace database 20, indicating that thestatic EI ID is disabled when utilizing the dynamic EI ID approach.

When these processing 940 receives merchant use information 980associated with an EI redemption request (e.g., a balance check request,a full redemption request, a partial redemption request, etc.), the useprocessing 940 determines whether the merchant use information 980 isvalid. The determining includes one or more of receiving EI info 950from one or more of the initial owner computing device 928 and the othercomputing device 1400, where the EI info 950 includes the static EI ID(e.g., does not include a dynamic EI ID), and indicating invalid when aretrieved portion of the marketplace database 20 indicates that thestatic EI ID is disabled (e.g., only the dynamic EI ID is allowed).

When the merchant use information 980 is invalid, the use processing 940denies the EI redemption request. The denying includes one or more ofissuing a denial response to a requesting entity, and sending a securityalert to one or more of the EI issuing server 920, the EI buyercomputing device 926, and the merchant server 924, where the canalresponse indicates that at least one of the initial owner computingdevice 928 and the other computing device 1400 attempted to utilize thestatic ID based EI, where the initial owner computing device 928 mayhave attempted to fraudulently sell the EI directly to the othercomputing device 1400 after selling the EI through the marketplace tothe EI buyer computing device 928.

FIG. 11B is a logic diagram of an embodiment of a method for detectingfraudulent exchange item redemption in an exchange item marketplacenetwork. The method includes step 1410 where a processing module (e.g.,of a marketplace server) obtains exchange item (EI) information (info)for an EI to offer for sale in an exchange item market place network,where the EI info includes a static EI identifier (ID). The obtainingincludes at least one of extracting the EI info exchange with an initialowner computing device facilitating sale, and receiving from an EIissuing server in response to a new EI establishment request.

When the EI is purchased by a buyer computing device, the methodcontinues at step 1412 where the processing module issues the EI infoand EI security parameters to the buyer computing device, where the EIsecurity parameters are associated with a dynamic EI identifierapproach. The issuing includes generating the EI security parameters forthe EI (e.g., secret key, time interval increment, generator algorithmID, and combiner algorithm ID) and sending the EI info and the EIsecurity parameters to the buyer computing device.

The method continues at step 1414 where the processing module stores theEI info and the EI security parameters in the marketplace database,indicating that the static EI identifier is disabled. The methodcontinues at step 1416 where the processing module detects a request toutilize the static EI identifier with regards to a transaction (e.g.,balance check, validity check, redemption). The detecting includes oneor more of receiving EI info from one or more of an initial ownercomputing device and another computing device, where the EI infoincludes the static EI ID and does not include a dynamic EI ID, andindicating invalid when a retrieved portion of a marketplace databaseindicates that the static EI ID is disabled. The method continues atstep 1418 where the processing module denies the transaction. Thedenying includes one or more of issuing a canal response to a requestingentity, and sending a security alert to one or more of an EI issuingserver, the buyer computing device, and a merchant server.

FIG. 12A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the point-of-sale (POS)equipment 32 of FIG. 1, the merchant server 924 of FIG. 6, themarketplace server 18 of FIG. 6, and the marketplace database 20 of FIG.6. The EI buyer computing device 926 includes the digital wallet 944 ofFIG. 6. The marketplace server 18 includes the set up processing 936 ofFIG. 6 and the use processing 940 of FIG. 6. Hereafter, the EI buyercomputing device 926 may be interchangeably referred to as a usercomputing device. Hereafter the exchange item marketplace network may beinterchangeable referred to as a data communication system. The datacommunication system functions to abate fraudulent exchange itemacquisition in the exchange item marketplace network.

In an example of operation of the abating of the fraudulent exchangeitem acquisition, the set up processing 936 obtains EI information(info) 950 for an EI to offer for sale in the marketplace, where the EIinfo 950 includes a static EI identifier. The obtaining includes one ormore of receiving from the EI issuing server 920 in response to a new EIestablishment request and extracting from sale information exchangedwith an initial owner computing device facilitating the sale.

When the EI is purchased by the EI buyer computing device, the set upprocessing 936 distributes the EI info 950 and EI security parameters1290 to paired entities to support a future EI redemption. Thedetermining includes set up processing 936 generating the EI securityparameters 1290 for the EI, sending the EI info 950 and the EI securityparameters 1290 to the EI buyer computing device 926, and storing the EIinfo and the EI security parameters in the marketplace database 20,indicating that the static EI ID is disabled.

With the EI info and EI security parameters stored, the use processing940 determines that the EI was fraudulently purchased by the EI buyercomputing device (e.g., with a stolen credit card). The determiningincludes receiving an invalid EI indicator 1420 from the EI trustedmodule 922 or from another indicating entity. When the EI wasfraudulently purchase, the use processing 940 updates the EI securityparameters to produce updated EI security parameters 1422 and updatesthe EI information to produce updated EI info 1424 for storage in themarketplace database 20. For example, the use processing 940 generates anew secret key and indicates that the EI is for sale again.

FIG. 12B is a logic diagram of an embodiment of another method forabating fraudulent exchange item acquisition in an exchange itemmarketplace network. The method includes step 1430 where a processingmodule (e.g., of a marketplace server) obtains exchange item (EI)information for an EI to offer for sale in an exchange item market placenetwork, where the EI info includes a static EI identifier (ID). Theobtaining includes at least one of receiving the EI info from an EIissuing server in response to a new EI establishment request andextracting the EI info from sale information exchanged with an initialowner computing device facilitating the sale.

When the EI is purchased by a computing device, the method continues atstep 1432 where the processing module distributes the EI info and EIsecurity parameters paired to entities to support a future EIredemption. The determining includes one or more of generating the EIsecurity parameters for the EI, sending the EI info and the EI securityparameters to the computing device, and storing the EI info and the EIsecurity parameters in the marketplace database, indicating that thestatic EI ID is disabled.

The method continues at step 1434 where the processing module determinesthat the EI was fraudulently purchased by the computing device. Thedetermining includes receiving an invalid EI indicator from an EItrusted module or another indicating entity. When the EI wasfraudulently purchased, the method continues at step 1436 where theprocessing module updates the EI info and EI security parameters toproduce updated EI info and updated EI security parameters for storagein the marketplace database. For example, the processing modulegenerates a new secret key to replace a secret key of the EI securityparameters and indicates that the EI is for sale again. Alternatively,or in addition to, the processing module sends the updated EI info andupdated EI security parameters to another computing device when theother computing device initiates a purchase transaction of the EI.

FIG. 13A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the marketplace server 18 ofFIG. 6, the marketplace database 20 of FIG. 6, and one or more othercomputing devices 1440. The one or more other computing devices 1440 maybe implemented utilizing one or more other EI buyer computing devicesand may include the EI buyer computing device 926. The EI buyercomputing device 926 includes the digital wallet 944 of FIG. 6. Each ofthe other computing devices 1440 includes the digital wallet 944 of FIG.6. The marketplace server 18 includes the set up processing 936 of FIG.6. Hereafter, the EI buyer computing device 926 may be interchangeablyreferred to as a user computing device. Hereafter the exchange itemmarketplace network may be interchangeable referred to as a datacommunication system. The data communication system functions toredistribute an exchange item in the exchange item marketplace network.

In an example of operation of the redistributing of the exchange item,the set up processing 936 obtains EI information (info) 950 for an EI tooffer for sale in the marketplace, where the EI info includes a staticEI identifier (ID). The obtaining includes at least one of extractingthe EI info from sale info exchanged with an initial owner computingdevice facilitating sale and receiving from the EI issuing server 920 inresponse to a new EI establishment request. When the EI is purchased bythe EI buyer computing device 926, the set up processing 936 issues theEI info 950 and EI security parameters 1290 to the EI buyer computingdevice 926. The issuing includes generating the EI security parametersfor the EI and sending the EI info and the EI security parameters to theEI buyer computing device 926.

Having sent the EI info and EI security parameters to the EI buyercomputing device, the set up processing 936 stores the EI info 950 andthe EI security parameters 1290 in the marketplace database 20,indicating that the static EI ID is disabled. When the EI buyercomputing device 926 initiates a redistribution of the EI to the othercomputing devices 1440, the set up processing 936 verifies the receivedredistribution request 1442 and dynamic EI info 1292 from the EI buyercomputing device 926. The verifying includes the EI buyer computingdevice generating the dynamic EI info to include a dynamic EI identifierbased on the EI security parameters, the EI buyer computing devicegenerating the redistribution request 1442 to include a redistributionapproach (i.e., how much of a remaining balance to divide up to each ofthe other computing devices), the EI buyer computing device 926 sendingthe redistribution request 1442 and the dynamic EI info 1292 to the setup processing 936, and the set up processing 936 indicating verifiedwhen a comparison of the received dynamic EI info to locally generateddynamic EI info is favorable (i.e., same dynamic EI ID).

For each of the other computing devices 1440, the set up processing 936issues updated EI info 1444 and updated EI security parameters 1446 inaccordance with the redistribution request 1442. The issuing includesgenerating the updated EI security parameters 1446 (i.e., generate aunique security for each other computing device), modifying the EI infoto indicate a redistributed EI to produce the updated EI info 1444(i.e., portion of a remaining balance), sending the updated EI info 1444and the updated EI security parameters 1446 to the other computingdevice 1440, and storing the updated EI info 1444 and the updated EIsecurity parameters 1446 in the marketplace database 20.

FIG. 13B is a logic diagram of an embodiment of a method forredistributing an exchange item in an exchange item marketplace network.The method includes step 1450 where a processing module (e.g., of amarketplace server) obtains exchange item (EI) information (info) for anEI to offer for sale in a marketplace. The obtaining includes at leastone of extracting the EI info from sale info exchanged with an initialowner computing device facilitating sale and receiving the EI info froman EI issuing server in response to a new EI establishment request.

When the EI is purchased by a buyer computing device, the methodcontinues at step 1452 where the processing module issues the EI infoand EI security parameters buyer computing device. The issuing includesgenerating the EI security parameters for the EI (i.e., to include adynamic EI ID) and sending the EI info and the EI security parameters tothe buyer computing device. The method continues at step 1454 where theprocessing module stores the EI info and the EI security parameters in amarketplace database to facilitate subsequent verification of aredistribution and/or redemption request.

When the buyer computing device initiates redistribution of the EI toone or more other computing devices, the method continues at step 1456where the processing module verifies a received redistribution requestand dynamic EI info from the buyer computing device. The verifyingincludes the buyer computing device generating the dynamic EI info toinclude the dynamic EI ID based on the EI security parameters, the buyercomputing device generating the redistribution request to include aredistribution approach, the buyer computing device sending theredistribution request and the dynamic EI info to the processing module,and the processing module indicating verified when a comparison of thereceived dynamic EI info to locally generated dynamic EI info isfavorable (i.e., same dynamic EI ID).

When verified, the method continues at step 1458 where, for each of theone or more other computing devices, the processing module issuesupdated EI info and updated EI security parameters in accordance withthe redistribution request. The issuing includes generating the updatedEI security parameters (i.e., a unique security for each other computingdevice), modifying the EI info to indicate a redistributed EI to producethe updated EI info, sending the updated EI info and updated EI securityparameters to the other computing device, and storing the updated EIinfo and updated EI security parameters in the marketplace database.

FIG. 14A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the marketplace server 18 ofFIG. 6, and the marketplace database 20 of FIG. 6. The EI buyercomputing device 926 includes the digital wallet 944 of FIG. 6. Themarketplace server 18 includes the set up processing 936 of FIG. 6.Hereafter, the EI buyer computing device 926 may be interchangeablyreferred to as a user computing device. Hereafter the exchange itemmarketplace network may be interchangeable referred to as a datacommunication system. The data communication system functions to convertan exchange item identification approach in the exchange itemmarketplace network.

In an example of operation of the converting of the exchange itemidentification approach, when the EI buyer computing device 926purchases one or more exchange items through the marketplace server 18,the set up processing 936 issues EI information (info) 950 to the EIbuyer computing device 926 for storage in the digital wallet 944, wherethe EI info 950 is based on a static EI identifier (ID). The issuingincludes one or more of exchanging EI info 950 with the EI issuingserver 920, where the EI issuing server 920 exchanges trust information954 with the EI trusted module 922, where the EI trusted module 922exchanges set up verification 956 with the set up processing 936 toverify the one or more exchange items, and for each EI, sending the EIinfo 950 to the EI buyer computing device 926, and storing the EI info950 in the marketplace database 20.

At least one of the EI buyer computing device 926 and the set upprocessing 936 determines to initiate a conversion process to convertthe one or more exchange items based on the static EI identifiers intothe exchange items based on a dynamic EI identifier approach. Thedetermining may be based on one or more of a request, apredetermination, and interpretation of an EI rule, in accordance with atimeframe expiration, a security issue, a solicitation, etc.

When converting, the set up processing 936 receives a conversion request1460 from the EI buyer computing device 926, where the conversionrequest 1460 includes static EI identifiers of the one or more exchangeitems and an indication to initiate the conversion. For each EI, the setup processing 936 generates EI security parameters 1290 and updated EIinfo 1462. The generating includes generating the EI security parameters1290 (i.e., producing a common secret key, producing unique secretkeys), and updating the EI info to produce the updated EI info 1462 toindicate that the static ID is disabled and that the dynamic identifierapproach is to be utilized.

Having generated the updated EI info 1462 and the EI security parameters1290, the set up processing 936 facilitates distribution of the updatedEI info 1462 and the EI security parameters 1290. The facilitatingincludes one or more of storing the updated EI info 1462 and the EIsecurity parameters 1290 in the marketplace database 20 and sending theupdated EI info 1462 and the EI security parameters 1290 to the EI buyercomputing device 926 to replace the static exchange item identifiers inthe digital wallet 944.

FIG. 14B is a logic diagram of an embodiment of a method for convertingan exchange item identification approach in an exchange item marketplacenetwork. When a buyer computing device purchases one or more exchangeitems, the method includes step 1470 where a processing module (e.g., ofa marketplace server) issues EI information to the buyer computingdevice, where the EI information is based on a static EI identifier (ID)approach. The issuing includes one or more of exchanging EI info with anEI issuing server and storing the EI info in a marketplace database.

The method continues at step 1472 where the processing module determinesto initiate a conversion process to convert the one or more exchangeitems based on the static EI identifiers into EIs based on a dynamic EIidentifier approach. The determining may be based on one or more ofreceiving a request, interpreting a predetermination, interpreting an EIrule, invoking after a timeframe expression, detecting a security issue,interpreting a solicitation, etc.

The method continues at step 1474 where the processing module receives aconversion request from the buyer computing device, where the conversionrequest includes static EI identifiers of the one or more exchangeitems. For each EI, the method continues at step 1476 where theprocessing module generates the EI security parameters and updated EIinformation. The generating includes generating the EI securityparameters (i.e., a common secure key, unique secret keys), and updatingthe EI info to produce the updated EI info to indicate that the staticID is disabled and that the dynamic identifier approach is to beutilized.

For each EI, the method continues at step 1478 where the processingmodule distributes the EI security parameters and the updated EIinformation. The determining includes storing the updated EI info andthe EI security parameters in the marketplace database and sending theupdated EI info in the EI security parameters to the buyer computingdevice to replace the static EI identifiers.

FIG. 15A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the marketplace server 18 ofFIG. 6, the marketplace database 20 of FIG. 6, and one or more othercomputing devices 1480. The one or more other computing devices 1480 maybe implemented utilizing one or more other EI buyer computing devicesand may include the EI buyer computing device 926. The EI buyercomputing device 926 includes the digital wallet 944 of FIG. 6. Each ofthe other computing devices 1480 includes the digital wallet 944 of FIG.6. The marketplace server 18 includes the set up processing 936 of FIG.6. Hereafter, the EI buyer computing device 926 may be interchangeablyreferred to as a user computing device. Hereafter the exchange itemmarketplace network may be interchangeable referred to as a datacommunication system. The data communication system functions to sharean exchange item in the exchange item marketplace network.

In an example of operation of the redistributing of the exchange item,the set up processing 936 obtains EI information (info) 950 for an EI tooffer for sale in the marketplace, where the EI info includes a staticEI identifier (ID). The obtaining includes at least one of extractingthe EI info from sale info exchanged with an initial owner computingdevice facilitating sale and receiving from the EI issuing server 920 inresponse to a new EI establishment request. When the EI is purchased bythe EI buyer computing device 926, the set up processing 936 issues theEI info 950 and EI security parameters 1290 to the EI buyer computingdevice 926. The issuing includes generating the EI security parametersfor the EI and sending the EI info and the EI security parameters to theEI buyer computing device 926.

Having sent the EI info and EI security parameters to the EI buyercomputing device, the set up processing 936 stores the EI info 950 andthe EI security parameters 1290 in the marketplace database 20,indicating that the static EI ID is disabled. When the EI buyercomputing device 926 initiates a sharing of the EI with the othercomputing devices 1480, the set up processing 936 verifies a receivedsharing request 1482 and dynamic EI info 1292 from the EI buyercomputing device 926. The verifying includes the EI buyer computingdevice generating the dynamic EI info to include a dynamic EI identifierbased on the EI security parameters, the EI buyer computing devicegenerating the redistribution request 1442 to include a sharing approach(i.e., first come first serve to a remaining EI balance), the EI buyercomputing device 926 sending the sharing request 1482 and the dynamic EIinfo 1292 to the set up processing 936, and the set up processing 936indicating verified when a comparison of the received dynamic EI info tolocally generated dynamic EI info is favorable (i.e., same dynamic EIID).

For each of the other computing devices 1480, the set up processing 936issues shared EI info 1484 and shared EI security parameters 1486 inaccordance with the sharing request 1482. The issuing includesgenerating the shared EI security parameters 1486 (i.e., generate acommon secret key for each other computing device), modifying the EIinfo to indicate a shared EI to produce the shared EI info 1484 (i.e., aremaining balance), sending the share EI info 1484 and the shared EIsecurity parameters 1486 to the other computing device 1480, and storingthe shared EI info 1484 and the shared EI security parameters 1486 inthe marketplace database 20.

FIG. 15B is a logic diagram of an embodiment of a method for sharing anexchange item in an exchange item marketplace network. The methodincludes step 1490 where a processing module (e.g., of a marketplaceserver) obtains exchange item (EI) information (info) for an EI to offerfor sale in a marketplace. The obtaining includes at least one ofextracting the EI info from sale info exchanged with an initial ownercomputing device facilitating sale and receiving the EI info from an EIissuing server in response to a new EI establishment request.

When the EI is purchased by a buyer computing device, the methodcontinues at step 1492 where the processing module issues the EI infoand EI security parameters to the buyer computing device. The issuingincludes generating the EI security parameters for the EI (i.e., toinclude a dynamic EI ID) and sending the EI info and the EI securityparameters to the buyer computing device. The method continues at step1494 where the processing module stores the EI info and the EI securityparameters in a marketplace database to facilitate subsequentverification of a sharing and/or redemption request.

When the buyer computing device initiates a sharing of the EI with oneor more other computing devices, the method continues at step 1496 wherethe processing module verifies a received sharing request and dynamic EIinfo from the buyer computing device. The verifying includes the buyercomputing device generating the dynamic EI info to include the dynamicEI ID based on the EI security parameters, the buyer computing devicegenerating the sharing request to include a sharing approach, the buyercomputing device sending the sharing request and the dynamic EI info tothe processing module, and the processing module indicating verifiedwhen a comparison of the received dynamic EI info to locally generateddynamic EI info is favorable (i.e., same dynamic EI ID).

When verified, the method continues at step 1498 where, for each of theone or more other computing devices, the processing module issues sharedEI info and shared EI security parameters in accordance with the sharingrequest. The issuing includes generating the shared EI securityparameters (i.e., a common secret key for each other computing device),modifying the EI info to indicate a shared EI to produce the shared EIinfo, sending the shared EI info and shared EI security parameters tothe other computing device, and storing the shared EI info and shared EIsecurity parameters in the marketplace database.

FIG. 16A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the point-of-sale (POS)equipment 32 of FIG. 1, the merchant server 924 of FIG. 6, themarketplace server 18 of FIG. 6, and the marketplace database 20 of FIG.6. The EI buyer computing device 926 includes the digital wallet 944 ofFIG. 6. The marketplace server 18 includes the set up processing 936 ofFIG. 6 and the use processing 940 of FIG. 6. Hereafter, the EI buyercomputing device 926 may be interchangeably referred to as a usercomputing device. Hereafter the exchange item marketplace network may beinterchangeable referred to as a data communication system. The datacommunication system functions to convert exchange item brandaffiliation in the exchange item marketplace network.

In an example of operation of the converting of the exchange item brandaffiliation, when initiating a cross-brand EI redemption, the useprocessing 940 validates received merchant use information 1502 (i.e.,buyer use info 1500, merchant ID) from the merchant server 924, wherethe merchant server 924 receives buyer use information 1500 (i.e., itemfor purchase, EI ID, user computer ID, a blockchain ledger signed by theuser computing device, a cross-brand request, and dynamic EI info for anoriginal brand), via the point-of-sale (POS) equipment 32, from the EIbuyer computing device 926, where the EI buyer computing device 926,when acquiring an EI in accordance with a dynamic EI identifier (ID)approach, receives EI information (info) 950 and EI security parameters1290 from the set up processing 936, where the set up processing 936exchanges the EI info 950 and an EI rule set 952 with the EI issuingserver 920 to establish the EI.

When the received merchant use information 1502 is valid, and when an EIrule of the EI rule set 952 enables cross-brand utilization, the set upprocessing 936 facilitates conversion of the EI into another brand EI inaccordance with the EI rule. The facilitating includes the set upprocessing 936 distributing updated EI info 1506 (to include an ID ofthe other brand) based on the EI info 950 and updated EI securityparameters 1504 (a new secret key, etc.) to the EI buyer computingdevice 926 and to the marketplace database 20 for storage.

These processing 940 facilitates conclusion of the cross-brand EIredemption when receiving valid cross-brand dynamic EI info 1508. Thefacilitating includes one or more of receiving the cross-brand dynamicEI info 1508 from the merchant server 924, where the merchant server 924receives the cross-brand dynamic EI info 1508 from the EI buyercomputing device 926 via the POS equipment 32, where the EI buyercomputing device 926 generates the cross-brand dynamic EI info 1508based on the updated EI info 1506 and the updated EI security parameters1504, indicating valid when a generated other brand dynamic EI IDcompares favorably to a received other brand dynamic EI ID of thecross-brand dynamic EI info 1508, and when valid, utilizing the otherbrand EI for the redemption (i.e., notify the merchant server 924 toinclude the transaction favorably, updating the marketplace databasewith a new remaining balance for the other brand EI).

FIG. 16B is a logic diagram of an embodiment of a method for convertingexchange item brand affiliation in an exchange item marketplace network.The method includes step 1510 where a processing module (e.g., of amarketplace server) validates a received cross-brand exchange item (EI)redemption request from a computing device with regards to the EI. Thevalidating includes indicating valid when a received dynamic EIidentifier (ID) compares favorably to a generated dynamic EI ID based onEI security parameters and EI info associated with the EI.

When valid, and when an EI rule enables the cross-brand EI redemption,the method continues at step 1512 where the processing modulefacilitates conversion of the EI into another brand EI in accordancewith the EI rule and the redemption request. The facilitating includesone or more of distributing updated EI info (i.e. to include an ID ofthe other brand) based on the EI info and updated EI security parameters(i.e., a new secret key, etc.) to the computing device and to amarketplace database.

The method continues at step 1514 where the processing modulefacilitates conclusion of the cross-brand EI redemption when receivingvalid cross-brand dynamic EI info from the buyer computing device. Thefacilitating includes one or more of receiving the cross-brand dynamicEI info, where the computing device generates the cross-brand dynamic EIinfo to include another brand dynamic EI ID based on the updated EI infoand the updated EI security parameters, indicating valid when agenerated other brand dynamic EI ID compares favorably to the receivedother brand dynamic EI ID, and when valid, utilizing the other brand EIfor the redemption (i.e., notify a merchant server to conclude thetransaction favorably, update the marketplace database with a newremaining balance for the other brand EI). Alternatively, or in additionto, the processing module utilizes the other brand EI without validatingthe cross-brand updated EI info from the buyer computing device.

FIG. 17A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the point-of-sale (POS)equipment 32 of FIG. 1, the merchant server 924 of FIG. 6, themarketplace server 18 of FIG. 6, and the marketplace database 20 of FIG.6. The EI buyer computing device 926 includes the digital wallet 944 ofFIG. 6. The EI buyer computing device 926 may be additionallyimplemented as a token device (i.e., including a simple digital displayand a one-time use long life battery). The marketplace server 18includes the set up processing 936 of FIG. 6 and the use processing 940of FIG. 6. Hereafter, the EI buyer computing device 926 may beinterchangeably referred to as a user computing device. Hereafter theexchange item marketplace network may be interchangeable referred to asa data communication system. The data communication system functions tovalidate exchange item redemption in the exchange item marketplacenetwork.

In an example of operation of the validating of the exchange itemredemption, when the EI buyer computing device 926 initiates the EIredemption utilizing a post-dated dynamic EI identifier (ID) approach,these processing 940 receives buyer use information 1524, publicinformation (info) 1520, and secret information 1522 from the EI buyercomputing device 926. The buyer use information 1524 includes one ormore of a purchase amount, an identifier of an item for purchase, and anindicator of use of the post-dated dynamic EI ID approach. The publicinformation 1520 includes one or more of an issuance time (of a physicalrepresentation of a dynamic exchange item), a static EI number, and aportion of a dynamic EI ID. The secret information 1522 includes aremaining portion of the dynamic EI ID.

The receiving includes one or more of the set up processing 936generating dynamic EI parameters (i.e., a secret key, a time intervalincrement, a generator algorithm ID, a combiner algorithm ID);generating a dynamic EI ID using the dynamic EI parameters, a static IDof the EI, and a current time as the issuance time; generating thepublic information 1520 to include one or more of the issuance time, thestatic EI ID, and a portion of the dynamic EI ID (e.g., a mostsignificant 12 bits of a 16-bit ID); generating the secret info 1522 toinclude the remaining portion of the dynamic EI ID (e.g., a remaining 12bits of the 16-bit ID); providing the public info 1520 and the secretinfo 1522 to a user associated with the EI buyer computing device 926(e.g., one or more printed tickets, an audio output, a visual displayoutput, etc.); the EI buyer computing device 926 receiving one or moreinputs from the user including the public information 1520 and thesecret information 1522 (e.g., via a manual keyboard input); the EIbuyer computing device 926 sending the buyer use information 1524, thepublic information 1520, and the secret information 1522 to the merchantserver 924 via the POS equipment 32; and the merchant server 924 issuingmerchant use information 1526 to the use processing 940, where themerchant use information 1526 includes a merchant server ID, the buyeruse information 1524, the public information 1520, and the secretinformation 1522.

Having received the merchant use information 1526, the use processing940 validates the merchant use information 1526 in accordance with thepost-dated dynamic EI ID approach. The validating includes one or moreof combining the portion of the dynamic EI ID from the publicinformation 1520 with the remaining portion of the dynamic EI ID fromthe secret information 1522 to produce a received dynamic EI ID;utilizing the EI security parameters and the EI info 950 retrieved fromthe marketplace database 20 to produce a locally generated dynamic EIID, where issuance time of the received public information is utilizedas a time inputs; and indicating that the merchant use information 1526is valid when the received dynamic EI ID compares favorably to thelocally generated dynamic EI ID.

When valid, the use processing 940 facilitates completion of the EIredemption. The facilitating includes one or more of notifying themerchant server 924 that the redemption is approved, and updating the EIinfo 950 maintained in the marketplace database 20 to indicate anupdated remaining balance of the EI, etc.

FIG. 17B is a logic diagram of an embodiment of a method for validatingexchange item redemption in an exchange item marketplace network. When acomputing device initiates an exchange item (EI) redemption utilizing apost-dated dynamic EI identification (ID) approach, the method includesstep 1530 where a processing module (e.g., of a marketplace server)receives redemption request information including one or more of buyeruse information, public information associated with the EI, and secretinformation associated with the EI. For example, the processing modulegenerates dynamic EI parameters; generates a dynamic EI ID of thedynamic EI parameters, a static ID of the EI, and a current time as anissuance time; generates the public information to include one or moreof the issuance time, the static EI ID, and a portion of the dynamic EIID; generates the secret information to include a remaining portion ofthe dynamic EI ID; provides the public information and the secureinformation to a user associated with the computing device (e.g., via aprinted ticket); the computing device receives one or more inputs fromthe user including the public information and the secret information(e.g., via a keyboard input); the computing device sends buyer useinformation, the public information, and the secret information to amerchant server; and the merchant server issues merchant use informationto the processing module, where the merchant use information includes amerchant server ID, the buyer use information, the public information,and the secret information.

The method continues at step 1532 where the processing module validatesthe redemption request information in accordance with the post-dateddynamic EI ID approach. The validating includes one or more of combiningthe portion of the dynamic EI ID from the public information with theremaining portion of the dynamic EI ID from the secure information toproduce a received dynamic EI ID; utilizing EI security parameters andEI information retrieved from a marketplace database to produce alocally generated dynamic EI ID, where the issuance time of the receivedpublic information is utilized as a time input; and indicating validwhen the received dynamic EI ID compares favorably to the locallygenerated dynamic EI ID.

When valid, the method continues at step 1534 where the processingmodule facilitates completion of the EI redemption. The facilitatingincludes one or more of notifying the merchant server that theredemption is approved and updating the EI information of themarketplace database to indicate an updated remaining balance of the EI,etc.

FIG. 18A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the point-of-sale (POS)equipment 32 of FIG. 1, the merchant server 924 of FIG. 6, themarketplace server 18 of FIG. 6, and the marketplace database 20 of FIG.6. The EI buyer computing device 926 includes the digital wallet 944 ofFIG. 6. The marketplace server 18 includes the set up processing 936 ofFIG. 6 and the use processing 940 of FIG. 6. Hereafter, the EI buyercomputing device 926 may be interchangeably referred to as a usercomputing device. Hereafter the exchange item marketplace network may beinterchangeable referred to as a data communication system. The datacommunication system functions to convert an exchange itemidentification approach in the exchange item marketplace network.

In an example of operation of the converting of the exchange itemidentification approach, for a group of exchange items to be associatedwith the EI buyer computing device 926, the set up processing 936distribute shared EI security parameters 1540. The determining includesone or more of generating the shared EI security parameters 1540 (e.g.,a common secret key, a common key seed, a common generator algorithm ID,a common time interval, a common combiner algorithm ID); sending EIinformation (info) 950 and the shared EI security parameters 1540 to theEI buyer computing device 926; and storing the EI info 950 and theshared EI security parameters 1540 in the marketplace database 20, wherethe set up processing 936 exchanges EI info 950 and an EI rule set 952with the EI issuing server 920, where the EI issuing server 920exchanges trust information 954 with the EI trusted module 922, andwhere the EI trusted module 922 exchanges set up verification 956 withthe set up processing 936 to verify the EI.

When the EI buyer computing device 926 utilizes a selected EI for an EIredemption, the use processing 940 receives dynamic EI information 1544and associated merchant use information 1546. The receiving includes oneor more of the EI buyer computing device 926 generating dynamic EIinformation (e.g., dynamic EI ID utilizing a dynamic EI ID approach)based on the shared EI security parameters 1540 and the EI info 950;sending the buyer use information 1542 (i.e., an identifier of an itemfor purchase, a static EI identifier, an EI buyer computing deviceidentifier, a blockchain ledger signed by the buyer computing device) tothe merchant server 924 via the POS equipment 32; the merchant server924 generating the merchant use information 1546 to include the buyeruse information 1542 and a merchant identifier; and the merchant server924 sending the merchant use information 1546 and the dynamic EIinformation 1544 to the use processing 940.

Having received the dynamic EI information 1544 and the associatedmerchant use information 1546, the use processing 940 verifies thedynamic EI information 1544. The verifying includes indicating favorableverification when a locally generated dynamic EI ID based on retrievedshared EI security parameters 1540 (i.e., retrieved from the marketplacedatabase 20) compares favorably to a received dynamic EI ID of thedynamic EI information 1544. When favorably verified, the use processing940 facilitates completion of the redemption. The facilitating includesone or more of updating the EI info 950 in the marketplace database 20to adjust a remaining balance level, and notifying the merchant server924 that the redemption is approved.

FIG. 18B is a logic diagram of an embodiment of another method forconverting an exchange item identification approach in an exchange itemmarketplace network. For a group of exchange items to be associated witha computing device, the method includes step 1550 where a processingmodule (e.g., of a marketplace server) distributes shared exchange item(EI) security parameters. The distributing includes one or more ofgenerating common EI parameters, sending EI information (info) and theshared EI security parameters to the computing device, and storing theEI info and the shared EI parameters in a marketplace database forsubsequent utilization during a redemption request.

When the computing device utilizes a selected EI for an EI redemption,the method continues at step 1552 where the processing module receivesdynamic EI information and associated merchant use information. Thereceiving includes one or more of the computing device generating thedynamic EI information based on the shared EI security parameters andthe EI information, sending buyer use information (i.e., item forpurchase ID, static EI ID, EI buyer computing device ID, a blockchainledger signed by the buyer computing device) to the merchant server, themerchant server generating the merchant use information to include thebuyer use information and a merchant identifier, and the merchant serversending the merchant use information and the dynamic EI information tothe processing module.

The method continues at step 1554 where the processing module verifiesthe dynamic EI information based on the distributed shared EI securityparameters. The verifying includes indicating favorable verificationwhen a locally generated dynamic EI ID based on retrieved shared EIsecurity parameters compares favorably to a received dynamic EI ID ofthe dynamic EI information. When favorably verified, the methodcontinues at step 1556 where the processing module facilitatescompletion of the EI redemption. The facilitating includes one or moreof updating the EI info of the EI in the marketplace database to adjusta remaining balance level and notifying the merchant server that theredemption is approved.

FIG. 19A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the marketplace server 18 ofFIG. 6, the marketplace database 20 of FIG. 6, one or more merchantservers 924 of FIG. 6, and one or more other computing devices 1568. Theone or more other computing devices 1568 may be implemented utilizingone or more other EI buyer computing devices. The EI buyer computingdevice 926 includes the digital wallet 944 of FIG. 6. Each of the othercomputing devices 1568 includes the digital wallet 944 of FIG. 6. Themarketplace server 18 includes the set up processing 936 of FIG. 6 andthe use processing 940 of FIG. 6. Hereafter, the EI buyer computingdevice 926 may be interchangeably referred to as a user computingdevice. Hereafter the exchange item marketplace network may beinterchangeable referred to as a data communication system. The datacommunication system functions to transfer an exchange item in theexchange item marketplace network.

In an example of operation of the transferring of the exchange item, theset up processing 936 distributes purchase recommendation information(info) 1560 to the one or more other computing devices 1568. Thepurchase recommendation info 1560 includes one or more of itemidentifiers, item purchase prices, exchange item identifiers, andprivatization information. The distributing includes obtaining thepurchase recommendation information (i.e., generate, receive),identifying the one or more other computing devices 1568 (i.e., identifyan affiliation with the EI buyer computing device 926 such as friends,family, a wedding registry, etc.), sending the purchase recommendationinformation 1560 to the identified other computing devices 1568, andstoring the purchase recommendation information 1560 in the marketplacedatabase 20.

Having distributed the purchase recommendation information, the set upprocessing 936 receives one or more EI transfer requests 1562 from theone or more other computing devices 1568 with regards to transferring atleast a portion of one or more exchange items from another computingdevice to the EI buyer computing device 926 in accordance withprioritization information of the purchase recommendation information1560. Each EI transfer request 1562 includes one or more of an itemidentifier, an item purchase price, and an identifier of an exchangeitem held by the other computing device. The receiving includes one ormore of another computing device selecting an item identifier of an itemfor purchase of the purchase recommendation information (i.e., manualinput, automatic selection based on exchange items held in the digitalwallet 944 of the other computing device 1568), the other computingdevice selecting the corresponding exchange item from the digital wallet944 of the other computing device for subsequent redemption tofacilitate purchase on behalf of the EI buyer computing device of theselected item, the other computing device generating the EI transferrequest 1562, and sending the EI transfer request to the marketplaceserver 18.

Having received the one or more EI transfer requests 1562, the set upprocessing 936 distributes updated EI information 1564 based on one ormore of the EI transfer request 1562 within a transfer time frame. Theupdated EI info 1564 includes an expanded list of exchange items held bythe EI buyer computing device 926. The determining includes one or moreof aggregating transferred exchange items into the updated EI info 1564,sending the updated EI info 1564 to the EI buyer computing device 926,and storing the updated EI info 1564 in the marketplace database 20.

The use processing 940 facilitates purchase of at least some of theidentified items for purchase utilizing the updated EI info 1564. Thefacilitating includes one or more of selecting the next item forpurchase utilizing one or more exchange items transferred to the EIbuyer computing device (i.e., identified by a list and the updated EIinfo) in accordance with the prioritized item identifiers of thepurchase recommendation information. Alternatively, or in addition to,the use processing 940 may receive a prioritization update from the EIbuyer computing device 926 with regards to reordering item purchases.The facilitating further includes the use processing 940 exchangingmerchant use information 1566 with one or more corresponding merchantservers 924 to facilitate the purchase of the selected items utilizingthe one or more exchange items transferred to the EI buyer computingdevice 926.

FIG. 19B is a logic diagram of an embodiment of a method fortransferring an exchange item in an exchange item marketplace network.The method includes step 1570 where a processing module (e.g., of amarketplace server) distributes purchase recommendation information toone or more gifting computing devices. The issuing includes one or moreof obtaining the purchase recommendation info (i.e., generating,receiving), identifying the one or more gifting computing devices (i.e.,identify an affiliation with a recipient computing device), sending thepurchase recommendation information to the identified gifting computingdevices, and storing the purchase recommendation information in amarketplace database.

The method continues at step 1572 where the processing module receivesone or more exchange item (EI) transfer requests from at least some ofthe one or more gifting computing devices with regards to transferringat least a portion of one or more exchange items to the recipientcomputing device. The receiving includes one or more of a giftingcomputing device selecting an item identifier of an item for purchase ofthe purchase recommendation info, selecting a corresponding exchangeitem associated with the gifting computing device for use in theredemption, generating the EI transfer request, and sending the EItransfer request to the processing module.

The method continues at step 1574 where the processing moduledistributes updated EI info based on the one or more EI transfer requestreceived within a receiving time frame. The distributing includes one ormore of aggregating transferred exchange items into the updated EI info,sending the updated EI info to the recipient computing device, andstoring the updated EI info in the market place database.

The method continues at step 1576 where the processing modulefacilitates purchase of at least some identified items utilizing theupdated EI info. The facilitating includes one or more of selecting, inaccordance with a privatization of the purchase recommendationinformation, a next item for purchase utilizing one or more exchangeitems transferred to the recipient computing device, interpreting aprioritization update from the recipient computing device, andexchanging merchant use information with one or more selected merchantservers to facilitate the purchase of the selected items utilizing theone or more exchange items transferred to the recipient computingdevice.

FIG. 20A is a schematic block diagram of another embodiment of anexchange item marketplace network that includes the exchange item (EI)issuing server 920 of FIG. 6, the EI trusted module 922 of FIG. 6, theEI buyer computing device 926 of FIG. 6, the marketplace server 18 ofFIG. 6, and the marketplace database 20 of FIG. 6. The EI buyercomputing device 926 includes the digital wallet 944 of FIG. 6. Themarketplace server 18 includes the set up processing 936 of FIG. 6.Hereafter, the EI buyer computing device 926 may be interchangeablyreferred to as a user computing device. Hereafter the exchange itemmarketplace network may be interchangeable referred to as a datacommunication system. The data communication system functions togenerate a marketplace credit in the exchange item marketplace network.

In an example of operation of the generating of the marketplace credit,the set up processing 936 determines to issue a marketplace EI credit tothe EI buyer computing device 926. The determining includes indicatingto issue the marketplace EI credit based on one or more of when the EIbuyer computing device 926 downloads a marketplace application, inresponse to a promotion, when requiring payment for purchase of anotherexchange item from the marketplace, when utilizing a discount topurchase the marketplace exchange item, in response to a request fromthe EI buyer computing device, and in accordance with a schedule.

Having determined to issue the marketplace EI credit, the set upprocessing 936 issues marketplace EI information (info) 1580 to the EIbuyer computing device 926. The marketplace EI info 1580 includes one ormore of a marketplace EI identifier, a consolidated marketplace EIremaining balance, and a marketplace EI rule set based on a rule set 952associated with the EI issuing server 920. The issuing includes one ormore of generating the marketplace EI info based on one or more of thedetermination to issue the marketplace EI credit, and marketplace EIinformation 1580 retrieved from the marketplace database (i.e., to addto remaining balance).

Having issued the marketplace EI info 1580, the set up processing 936stores the marketplace EI info 1580 in the marketplace database 20,where EI info 950 is stored for available exchange items in accordancewith the EI rule set 952 from the EI issuing server 920. When the EIbuyer computing device 926 initiates redemption of at least a portion ofthe marketplace EI info 1580 to purchase one or more exchange itemslisted in the marketplace, the set up processing 936 exchanges purchaseinformation 1582 with the EI buyer computing device. The purchaseinformation 1582 includes one or more of an exchange item identifier, amarketplace exchange item identifier, and marketplace EI balanceinformation. The exchanging includes one or more of receiving anidentifier for an exchange item for purchase utilizing the marketplaceEI associated with the EI buyer computing device 926, and sending aconfirmation of the purchase of the exchange item to the EI buyercomputing device 926.

FIG. 20B is a logic diagram of an embodiment of a method for generatinga marketplace credit in an exchange item marketplace network. The methodincludes step 1590 where a processing module (e.g., of a marketplaceserver) determines to issue a marketplace exchange item (EI) credit to acomputing device with regards to a marketplace EI associated with thecomputing device. The determining includes indicating to issue themarketplace he a credit based on one or more of when the computingdevice downloads a marketplace application, in response to promotion,when requiring payment for purchase of another exchange item from themarketplace, when utilizing a discount to purchase the marketplaceexchange item, in response to a request from the computing device, andin accordance with a schedule.

The method continues at step 1592 where the processing module issuesmarketplace EI information (info) to the computing device based on themarketplace EI credit. The issuing includes one or more of generatingthe marketplace EI info based on one or more of the determination toissue the marketplace EI credit and marketplace EI information retrievedfrom a marketplace database.

The method continues at step 1594 where the processing module stores themarketplace EI info in the marketplace database, where the EI info isstored for available exchange items for purchase when redeeming themarketplace exchange item. When the computing device initiatesredemption of the marketplace exchange item, the method continues atstep 1596 where the processing module exchanges purchase informationwith the computing device to fill facilitate purchase of one or more ofthe exchange items for purchase. The exchanging includes one or more ofreceiving an identifier for an exchange item to purchase when redeemingthe marketplace exchange item associated with the computing device andsending a confirmation of the purchase of the exchange item to thecomputing device.

It is noted that terminologies as may be used herein such as bit stream,stream, signal sequence, etc. (or their equivalents) have been usedinterchangeably to describe digital information whose contentcorresponds to any of a number of desired types (e.g., data, video,speech, audio, etc. any of which may generally be referred to as‘data’).

As may be used herein, the terms “substantially” and “approximately”provides an industry-accepted tolerance for its corresponding termand/or relativity between items. Such an industry-accepted toleranceranges from less than one percent to fifty percent and corresponds to,but is not limited to, component values, integrated circuit processvariations, temperature variations, rise and fall times, and/or thermalnoise. Such relativity between items ranges from a difference of a fewpercent to magnitude differences. As may also be used herein, theterm(s) “configured to”, “operably coupled to”, “coupled to”, and/or“coupling” includes direct coupling between items and/or indirectcoupling between items via an intervening item (e.g., an item includes,but is not limited to, a component, an element, a circuit, and/or amodule) where, for an example of indirect coupling, the intervening itemdoes not modify the information of a signal but may adjust its currentlevel, voltage level, and/or power level. As may further be used herein,inferred coupling (i.e., where one element is coupled to another elementby inference) includes direct and indirect coupling between two items inthe same manner as “coupled to”. As may even further be used herein, theterm “configured to”, “operable to”, “coupled to”, or “operably coupledto” indicates that an item includes one or more of power connections,input(s), output(s), etc., to perform, when activated, one or more itscorresponding functions and may further include inferred coupling to oneor more other items. As may still further be used herein, the term“associated with”, includes direct and/or indirect coupling of separateitems and/or one item being embedded within another item.

As may be used herein, the term “compares favorably”, indicates that acomparison between two or more items, signals, etc., provides a desiredrelationship. For example, when the desired relationship is that signal1 has a greater magnitude than signal 2, a favorable comparison may beachieved when the magnitude of signal 1 is greater than that of signal 2or when the magnitude of signal 2 is less than that of signal 1. As maybe used herein, the term “compares unfavorably”, indicates that acomparison between two or more items, signals, etc., fails to providethe desired relationship.

As may also be used herein, the terms “processing module”, “processingcircuit”, “processor”, and/or “processing unit” may be a singleprocessing device or a plurality of processing devices. Such aprocessing device may be a microprocessor, micro-controller, digitalsignal processor, microcomputer, central processing unit, fieldprogrammable gate array, programmable logic device, state machine, logiccircuitry, analog circuitry, digital circuitry, and/or any device thatmanipulates signals (analog and/or digital) based on hard coding of thecircuitry and/or operational instructions. The processing module,module, processing circuit, and/or processing unit may be, or furtherinclude, memory and/or an integrated memory element, which may be asingle memory device, a plurality of memory devices, and/or embeddedcircuitry of another processing module, module, processing circuit,and/or processing unit. Such a memory device may be a read-only memory,random access memory, volatile memory, non-volatile memory, staticmemory, dynamic memory, flash memory, cache memory, and/or any devicethat stores digital information. Note that if the processing module,module, processing circuit, and/or processing unit includes more thanone processing device, the processing devices may be centrally located(e.g., directly coupled together via a wired and/or wireless busstructure) or may be distributedly located (e.g., cloud computing viaindirect coupling via a local area network and/or a wide area network).Further note that if the processing module, module, processing circuit,and/or processing unit implements one or more of its functions via astate machine, analog circuitry, digital circuitry, and/or logiccircuitry, the memory and/or memory element storing the correspondingoperational instructions may be embedded within, or external to, thecircuitry comprising the state machine, analog circuitry, digitalcircuitry, and/or logic circuitry. Still further note that, the memoryelement may store, and the processing module, module, processingcircuit, and/or processing unit executes, hard coded and/or operationalinstructions corresponding to at least some of the steps and/orfunctions illustrated in one or more of the Figures. Such a memorydevice or memory element can be included in an article of manufacture.

One or more embodiments have been described above with the aid of methodsteps illustrating the performance of specified functions andrelationships thereof. The boundaries and sequence of these functionalbuilding blocks and method steps have been arbitrarily defined hereinfor convenience of description. Alternate boundaries and sequences canbe defined so long as the specified functions and relationships areappropriately performed. Any such alternate boundaries or sequences arethus within the scope and spirit of the claims. Further, the boundariesof these functional building blocks have been arbitrarily defined forconvenience of description. Alternate boundaries could be defined aslong as the certain significant functions are appropriately performed.Similarly, flow diagram blocks may also have been arbitrarily definedherein to illustrate certain significant functionality.

To the extent used, the flow diagram block boundaries and sequence couldhave been defined otherwise and still perform the certain significantfunctionality. Such alternate definitions of both functional buildingblocks and flow diagram blocks and sequences are thus within the scopeand spirit of the claims. One of average skill in the art will alsorecognize that the functional building blocks, and other illustrativeblocks, modules and components herein, can be implemented as illustratedor by discrete components, application specific integrated circuits,processors executing appropriate software and the like or anycombination thereof.

In addition, a flow diagram may include a “start” and/or “continue”indication. The “start” and “continue” indications reflect that thesteps presented can optionally be incorporated in or otherwise used inconjunction with other routines. In this context, “start” indicates thebeginning of the first step presented and may be preceded by otheractivities not specifically shown. Further, the “continue” indicationreflects that the steps presented may be performed multiple times and/ormay be succeeded by other activities not specifically shown. Further,while a flow diagram indicates a particular ordering of steps, otherorderings are likewise possible provided that the principles ofcausality are maintained.

The one or more embodiments are used herein to illustrate one or moreaspects, one or more features, one or more concepts, and/or one or moreexamples. A physical embodiment of an apparatus, an article ofmanufacture, a machine, and/or of a process may include one or more ofthe aspects, features, concepts, examples, etc. described with referenceto one or more of the embodiments discussed herein. Further, from figureto figure, the embodiments may incorporate the same or similarly namedfunctions, steps, modules, etc. that may use the same or differentreference numbers and, as such, the functions, steps, modules, etc. maybe the same or similar functions, steps, modules, etc. or differentones.

Unless specifically stated to the contra, signals to, from, and/orbetween elements in a figure of any of the figures presented herein maybe analog or digital, continuous time or discrete time, and single-endedor differential. For instance, if a signal path is shown as asingle-ended path, it also represents a differential signal path.Similarly, if a signal path is shown as a differential path, it alsorepresents a single-ended signal path. While one or more particulararchitectures are described herein, other architectures can likewise beimplemented that use one or more data buses not expressly shown, directconnectivity between elements, and/or indirect coupling between otherelements as recognized by one of average skill in the art.

The term “module” is used in the description of one or more of theembodiments. A module implements one or more functions via a device suchas a processor or other processing device or other hardware that mayinclude or operate in association with a memory that stores operationalinstructions. A module may operate independently and/or in conjunctionwith software and/or firmware. As also used herein, a module may containone or more sub-modules, each of which may be one or more modules.

While particular combinations of various functions and features of theone or more embodiments have been expressly described herein, othercombinations of these features and functions are likewise possible. Thepresent disclosure is not limited by the particular examples disclosedherein and expressly incorporates these other combinations.

What is claimed is:
 1. A method comprises: establishing, by amarketplace server of a data communication system, one or more securityparameters for an exchange item, wherein the exchange item includes anexchange item data file having a quantifiable value, a serial number,and issuance information; securely providing, by the marketplace server,the one or more security parameters to a user computing device of thedata communication system; and when the user computing device desires touse the exchange item: generating, by the user computing device, firstdynamically secure exchange item data using a dynamic securing functionhaving inputs that include a user time value, the one or more securityparameters, and one or more aspects of a copy of the exchange item datafile when held by the user computing device; receiving, by themarketplace server, the first dynamically secure exchange item data fromthe user computing device; generating, by the marketplace server, seconddynamically secure exchange item data using the dynamic securingfunction having inputs that includes a marketplace time value, the oneor more security parameters, and one or more aspects of the exchangeitem data file; comparing, by the marketplace server, the firstdynamically secure exchange item data with the second dynamically secureexchange item data; and when the first dynamically secure exchange itemdata substantially matches the second dynamically secure exchange itemdata, authorizing, by the marketplace server, the use of the exchangeitem by the user computing device.
 2. The method of claim 1 furthercomprises: receiving, by the marketplace server, the exchange item datafile from an issuing server of the data communication system.
 3. Themethod of claim 1, wherein the one or more security parameters comprisesone or more of: a secret key; a time interval truncation function; agenerator algorithm identifier to identify one of a plurality ofgenerator algorithms; and an arithmetic algorithm identifier to identifyone or more of a plurality of arithmetic algorithms.
 4. The method ofclaim 1, wherein the generating the first dynamically secure exchangeitem data comprises: executing, as part of the dynamic securingfunction, a generator function of a plurality of generator algorithms onthe user time value and the one or more security parameters to producean intermediate resultant; and executing an arithmetic function of aplurality of arithmetic functions on the intermediate resultant and theone or more aspects of the copy of the exchange item data file toproduce the first dynamically secure exchange item data.
 5. The methodof claim 1, wherein the generating the second dynamically secureexchange item data comprises: executing, as part of the dynamic securingfunction, a generator function of a plurality of generator algorithms onthe marketplace time value and the one or more security parameters toproduce an intermediate resultant; and executing an arithmetic functionof a plurality of arithmetic functions on the intermediate resultant andthe one or more aspects of the exchange item data file to produce thesecond dynamically secure exchange item data.
 6. The method of claim 1,wherein the generating the first dynamically secure exchange item datacomprises: executing, as part of the dynamic securing function, agenerator function of a plurality of generator algorithms on the usertime value and the one or more security parameters to produce anintermediate resultant; executing a first arithmetic function of aplurality of arithmetic functions on the intermediate resultant and afirst aspect of the one or more aspects of the copy of the exchange itemdata file to produce first partial dynamically secure exchange itemdata; executing a second arithmetic function of the plurality ofarithmetic functions on the intermediate resultant and a second aspectof the one or more aspects of the copy of the exchange item data file toproduce second partial dynamically secure exchange item data; andexecuting a third arithmetic function of a plurality of arithmeticfunctions on the first and second partial dynamically secure exchangeitem data to produce the first dynamically secure exchange item data. 7.The method of claim 1, wherein the one or more aspects of the exchangeitem data file comprises one more of: an exchange item identifier;issuer identity; issuance date; expiration time frame; exchange itemrules; and exchange item use parameters.
 8. A computer readable memorycomprises: a first memory element that stores operational instructionsthat, when executed by a marketplace server of a data communicationsystem, causes the marketplace server to: establish one or more securityparameters for an exchange item, wherein the exchange item includes anexchange item data file having a quantifiable value, a serial number,and issuance information; and securely provide the one or more securityparameters to a user computing device of the data communication system;and when the user computing device desires to use the exchange item: asecond memory element that stores operational instructions that, whenexecuted by the user computing device, causes the user computing deviceto: generate first dynamically secure exchange item data using a dynamicsecuring function having inputs that include a user time value, the oneor more security parameters, and one or more aspects of a copy of theexchange item data file when held by the user computing device; and sendthe first dynamically secure exchange item data to the marketplaceserver; and a third memory element that stores operational instructionsthat, when executed by the marketplace server, causes the marketplaceserver to: generate second dynamically secure exchange item data usingthe dynamic securing function having inputs that includes a marketplacetime value, the one or more security parameters, and one or more aspectsof the exchange item data file; compare the first dynamically secureexchange item data with the second dynamically secure exchange itemdata; and when the first dynamically secure exchange item datasubstantially matches the second dynamically secure exchange item data,authorize the use of the exchange item by the user computing device. 9.The computer readable memory of claim 8, wherein the first memoryelement further stores operational instructions that, when executed bythe marketplace server, causes the marketplace server to: receive theexchange item data file from an issuing server of the data communicationsystem.
 10. The computer readable memory of claim 8, wherein the one ormore security parameters comprises one or more of: a secret key; a timeinterval truncation function; a generator algorithm identifier toidentify one of a plurality of generator algorithms; and an arithmeticalgorithm identifier to identify one or more of a plurality ofarithmetic algorithms.
 11. The computer readable memory of claim 8,wherein the second memory element that stores operational instructionsthat, when executed by the user computing device, causes the usercomputing device to generate the first dynamically secure exchange itemdata by: executing a generator function of a plurality of generatoralgorithms on the user time value and the one or more securityparameters to produce an intermediate resultant; and executing anarithmetic function of a plurality of arithmetic functions on theintermediate resultant and the one or more aspects of the copy of theexchange item data file to produce the first dynamically secure exchangeitem data.
 12. The computer readable memory of claim 8, wherein thefirst memory element further stores operational instructions that, whenexecuted by the marketplace server, causes the marketplace server togenerate the second dynamically secure exchange item data by: executinga generator function of a plurality of generator algorithms on themarketplace time value and the one or more security parameters toproduce an intermediate resultant; and executing an arithmetic functionof a plurality of arithmetic functions on the intermediate resultant andthe one or more aspects of the exchange item data file to produce thesecond dynamically secure exchange item data.
 13. The computer readablememory of claim 8, wherein the second memory element that storesoperational instructions that, when executed by the user computingdevice, causes the user computing device to generate the firstdynamically secure exchange item data by: executing a generator functionof a plurality of generator algorithms on the user time value and theone or more security parameters to produce an intermediate resultant;executing a first arithmetic function of a plurality of arithmeticfunctions on the intermediate resultant and a first aspect of the one ormore aspects of the copy of the exchange item data file to produce firstpartial dynamically secure exchange item data; executing a secondarithmetic function of the plurality of arithmetic functions on theintermediate resultant and a second aspect of the one or more aspects ofthe copy of the exchange item data file to produce second partialdynamically secure exchange item data; and executing a third arithmeticfunction of a plurality of arithmetic functions on the first and secondpartial dynamically secure exchange item data to produce the firstdynamically secure exchange item data.
 14. The computer readable memoryof claim 8, wherein the one or more aspects of the exchange item datafile comprises one more of: an exchange item identifier; issueridentity; issuance date; expiration time frame; exchange item rules; andexchange item use parameters.
 15. A marketplace server of a datacommunication system, wherein the marketplace server comprises: anetwork interface; memory; and a processing module operably coupled tothe network interface and the memory, wherein the processing module isoperably coupled to: establish one or more security parameters for anexchange item, wherein the exchange item includes an exchange item datafile having a quantifiable value, a serial number, and issuanceinformation; securely provide the one or more security parameters to auser computing device of the data communication system; and when theuser computing device desires to use the exchange item: receive, via thenetwork interface from the user computing device, first dynamicallysecure exchange item data that was generated using a dynamic securingfunction having inputs that include a user time value, the one or moresecurity parameters, and one or more aspects of a copy of the exchangeitem data file when held by the user computing device; generate seconddynamically secure exchange item data using the dynamic securingfunction having inputs that includes a marketplace time value, the oneor more security parameters, and one or more aspects of the exchangeitem data file; compare the first dynamically secure exchange item datawith the second dynamically secure exchange item data; and when thefirst dynamically secure exchange item data substantially matches thesecond dynamically secure exchange item data, authorize the use of theexchange item by the user computing device.
 16. The marketplace serverof claim 15, wherein the processing module is further operable to:receive, via the network interface, the exchange item data file from anissuing server of the data communication system.
 17. The marketplaceserver of claim 15, wherein the one or more security parameterscomprises one or more of: a secret key; a time interval truncationfunction; a generator algorithm identifier to identify one of aplurality of generator algorithms; and an arithmetic algorithmidentifier to identify one or more of a plurality of arithmeticalgorithms.
 18. The marketplace server of claim 15, wherein theprocessing module is further operable to generate the second dynamicallysecure exchange item data by: executing, as part of the dynamic securingfunction, a generator function of a plurality of generator algorithms onthe marketplace time value and the one or more security parameters toproduce an intermediate resultant; and executing an arithmetic functionof a plurality of arithmetic functions on the intermediate resultant andthe one or more aspects of the exchange item data file to produce thesecond dynamically secure exchange item data.
 19. The marketplace serverof claim 15, wherein the processing module is further operable togenerate the second dynamically secure exchange item data by: executing,as part of the dynamic securing function, a generator function of aplurality of generator algorithms on the user time value and the one ormore security parameters to produce an intermediate resultant; andexecuting a first arithmetic function of a plurality of arithmeticfunctions on the intermediate resultant and a first aspect of the one ormore aspects of the exchange item data file to produce first partialdynamically secure exchange item data; executing a second arithmeticfunction of the plurality of arithmetic functions on the intermediateresultant and a second aspect of the one or more aspects of the exchangeitem data file to produce second partial dynamically secure exchangeitem data; and executing a third arithmetic function of a plurality ofarithmetic functions on the first and second partial dynamically secureexchange item data to produce the first dynamically secure exchange itemdata.
 20. The marketplace server of claim 15, wherein the one or moreaspects of the exchange item data file comprises one more of: anexchange item identifier; issuer identity; issuance date; expirationtime frame; exchange item rules; and exchange item use parameters. 21.The marketplace server of claim 15, wherein the processing module isfurther operable to establish the one or more security parameters forthe exchange item by: detecting fraudulent acquisition of the exchangeitem; and determining to establish the one or more security parametersto facilitate replacement of the exchange item for the user computingdevice.